A Federal Reserve regional president suggested Tuesday that the central bank’s rate-setting committee could effectively ignore a politically appointed Fed chair, delivering a subtle rebuke to President Donald Trump’s escalating pressure campaign against current Fed leadership.
Richmond Fed President Tom Barkin told an audience in Baltimore that while he hopes the next Fed chair will “try to decide the best policy for the country,” he also pointed out that the 12-member Federal Open Market Committee need not take direction from the chair.
During a question-and-answer session, Barkin cited past instances where the committee has overruled its chair, telling the audience: “It happens. We’ll just have to see.”
The comments come as Trump has intensified his attacks on Fed Chair Jerome Powell, threatening to fire him before his term expires in May 2026 and reportedly considering naming a “shadow chair” to pressure the Fed into cutting interest rates.
Related: US Housing Finance Chief Calls for Powell Investigation, Trump Wants Him to Resign
Trump has explicitly said he wants lower rates to reduce government borrowing costs for his administration’s planned $4 trillion in additional federal debt. The president has said he’ll pick a person who is willing to lower rates, raising concerns over Fed independence among candidates being discussed for the position.
Powell confirmed this month that the Fed would have cut rates by now if not for Trump’s tariff policies, which have complicated the central bank’s inflation outlook. Markets have reacted negatively to Trump’s threats, with uncertainty about Fed independence causing sell-offs earlier this year.
Related: Powell Resists Trump Pressure for Aggressive Rate Cuts
Barkin’s remarks underscore the institutional safeguards built into the Fed’s structure. The FOMC consists of the Fed’s seven-member governing board, the New York Fed chief, and four regional bank presidents serving rotating terms. This structure means that even a politically appointed chair would need majority support from other voting members to implement policy changes.
Multiple Fed officials have recently emphasized their commitment to making decisions based on economic data rather than political pressure, with several stating they will resist calls for premature rate cuts.
The Fed has maintained current interest rates while evaluating how Trump’s trade policies and other administrative changes will affect the economy. Barkin said recent tariff implementations have created pricing pressures that complicate the central bank’s inflation assessment.
Related: Powell Hints Fed Will Wait On Tariff Data Before Any Rate Cut
Powell’s current term as Fed chair expires in May 2026, giving Trump the opportunity to nominate a replacement. However, Barkin’s comments suggest that any attempt to install a politically compliant chair could face resistance from the broader committee structure that governs monetary policy decisions.
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