2025 was a particularly bumpy year for this group. One big reason was due to increasing internal dissent about whether, when, and how much interest rates should be lowered. Earlier this month, the Federal Open Market Committee (the Fed’s primary monetary-policy-making body) decreased its key interest rate by 25 basis points to a range of 3.50% to 3.75%, representing the third consecutive rate cut this year and the sixth since late 2024. President Trump was another reason: He has consistently criticized Fed Chair Jerome Powell and is eager to replace him, when his term ends in May 2026, with someone who prefers much lower rates. As we head toward that transition, it’s fair to question whether his successor will support the Fed’s traditional independence as a government agency or favor the Trump Administration’s more aggressive push for easing rates.
How will things shake out at the Federal Reserve this year? Who will ultimately replace Powell? And can we anticipate more rate cuts in the coming months? For answers, read my newest article for Mortgage Resource Network, available here.
