Fed governors may dissent against Powell amid Trump pressure - WSJ’s Timiraos

Published 30/07/2025, 05:00
© Reuters.

Investing.com-- The U.S. Federal Reserve could see a rare split vote among its governors at this week’s policy meeting, with at least two President Donald Trump-appointed members expected to dissent, according to a Wall Street Journal report by Nick Timiraos.

The report said that Governors Christopher Waller and Michelle Bowman may oppose Fed Chair Jerome Powell’s expected decision to hold interest rates steady. If both dissent, it would mark the first time since 1993 that more than one Fed governor has voted against the chair at the same meeting.

Dissents were common in the 1980s under Paul Volcker but faded as the Fed embraced consensus-driven policymaking, Timiraos wrote.

The possible dissent comes as President Donald Trump intensifies criticism of Powell and pushes for rate cuts. Bowman and Waller, both Trump appointees, have previously called for rate reductions. 

Bowman, the Fed’s top banking regulator, broke a 19-year silence on governor dissents last September, opposing deeper rate cuts. Waller, a vocal advocate for easing, has framed potential dissent as a principled stand rather than political theater. Both are seen as contenders to replace Powell, whose term expires next May.

Timiraos, also known as the "Fed whisperer," wrote that Powell, known for consensus-building, faces one of his toughest tests yet. 

Dissenting Fed officials risk losing influence, as voting against the majority can exclude them from shaping the post-meeting policy message, he added.

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