Trump launched a "boiling frog" style pressure for interest rate cuts, while Powell privately insisted on fully serving his term.

On July 25, according to CNN, SEC Chairman Powell told several colleagues and allies that he would never yield to Trump's calls for him to resign, vowing to withstand Trump's unprecedented and multifaceted attacks on his refusal to cut interest rates in the coming months. Powell privately stated that his decision to stay is not only for personal reasons but also because his chairmanship is closely tied to the overall independence of the Fed, and resigning now would undermine the Fed's long-standing independence from political interference. Powell firmly believes it is his responsibility to uphold this independence. Powell briefly served in the George W. Bush administration and has been known for his image as a rigorous nonpartisan "straight shooter" during his more than ten years at the Fed, which helped him be nominated by Trump as Fed Chairman in 2017. However, this style, which gained Trump's appreciation during his first term, has now become Powell's weakness, as Trump has repeatedly expressed dissatisfaction with Powell's unwillingness to respond to his calls for rate cuts, "It's like talking to a chair, there's no response." The White House has spent considerable time in recent weeks focusing on the Fed's $2.5 billion renovation project, investigating cost overruns, and hinting that this could be a reason for Powell's dismissal. This Thursday, Trump ramped up pressure by personally visiting the Fed to oversee the project, 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." A Trump advisor likened this pressure to "boiling a frog in warm water," stating, "Either Powell jumps out, or he gets cooked."