Trump Unleashes 'Boiling the Frog' Pressure to Cut Interest Rates, Powell Privately Vows to Serve Full Term

ChainThink reports , July 25, according to a CNN report, U.S. Federal Reserve Chair Jerome Powell told multiple colleagues and allies that he would absolutely not yield to calls from Donald Trump for him to resign. Powell vowed to withstand what he described as unprecedented and multifaceted attacks from Trump over the coming months, who has criticized Powell for refusing to cut interest rates.

In private conversations, Powell reportedly said that his decision to remain in office is not only a personal one, but also tied to the broader independence of the Federal Reserve. Resigning now, he believes, would undermine the Fed’s long-standing autonomy from political interference. Powell strongly feels that his duty is to safeguard this independence.

Powell, who briefly served in the George H.W. Bush administration, has built a reputation over more than a decade at the Fed as a rigorous, nonpartisan, and outspoken figure — a reputation that earned him his nomination by Trump as Fed Chair in 2017. However, the very style that endeared Powell to Trump during his first term has now become a liability. Trump has repeatedly expressed frustration with Powell’s refusal to comply with his demands for rate cuts, complaining, “It’s like talking to a chair — no response.”

In recent weeks, the White House has focused heavily on a $2.5 billion renovation project at the Federal Reserve, investigating cost overruns and hinting that this could become a justification for Powell’s removal. On Thursday, Trump escalated the pressure by personally visiting the Fed to tour the construction site, with Powell accompanying him. During the visit, Trump patted Powell on the back and said, “I just want to see one thing happen — interest rates must come down.” One Trump advisor likened the pressure on Powell to “boiling a frog in warm water.” As the advisor put it, “Either Powell jumps out, or he gets boiled.”