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Fed Civil War as Even Democrats Push Powell to Cut Rates.

🎯 IMPACT: With President Trump, GOP and Democrat lawmakers, and Federal Reserve governors increasingly opposed to Powell’s refusal to cut rates, he may be forced to begin climbing down from his position.

💬 KEY QUOTE: “From our side, we’d love to see the rates go down,” said Congressman Juan Vargas (D-CA), adding: “I know a number of my colleagues on the other side would love to see the rates go down. I think it’s pretty unanimous.”

👤 WHO WAS INVOLVED: Democrat and Republican members of the House Financial Services Committee, Federal Reserve Chairman Jerome Powell, President Donald J. Trump, and Federal Reserve Board of Governors members Christopher Waller and Michelle Bowman.

IN FULL

Federal Reserve Chairman Jerome Powell is facing mounting pressure both internally at the central bank and externally from the White House and a bipartisan coalition of lawmakers on Capitol Hill to begin reducing U.S. interest rates. Appearing before Congress on Tuesday, Powell was peppered by House Republicans and Democrats alike to explain his reasoning for not moving to reduce the cost of borrowing.

“From our side, we’d love to see the rates go down,” Congressman Juan Vargas (D-CA) told the Fed chairman during a House Financial Services Committee hearing on Tuesday. The California Democrat added: “I know a number of my colleagues

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