President Donald Trump branded Fed Chair Jerome Powell “Too Late Powell” after May’s hold-steady decision.
Historians recall how “Sloppy Janet” and “Bonehead Jay” stuck in public memory, coloring legacy debates.
Policy Cross-Currents
Inflation remains above target, yet growth is visibly cooling after tariff shocks and tighter immigration rules.
Markets price a 60 percent chance of a July rate cut, up from 35 percent a month ago.
The Chair’s Defense
Powell says the committee is “data-dependent” and “in no hurry,” arguing premature easing could anchor inflation expectations higher.
He insists the Fed will act if unemployment rises or credit conditions tighten further.
Political Minefield in an Election Year
Trump allies want rapid cuts to juice consumer sentiment, while Democrats warn easy money could stoke asset bubbles.
Any move before the Republican convention risks accusations of bias; any delay risks the “too late” moniker.
Market Reaction So Far
Treasury yields slipped five basis points after Powell’s press conference, and the S&P 500 closed flat.
Futures traders see volatility ahead of August’s Jackson Hole symposium, where Powell may clarify the glide-path.
Legacy Stakes
Past chairs remember forbearance missteps more than daring rescues.
Powell’s challenge is to exit with neither label stuck to his resume.