(The Epoch Times)—The Federal Reserve’s challenges extend beyond Chair Jerome Powell’s stance on interest rates, said Treasury Secretary Scott Bessent on CNBC’s “Squawk Box” on July 7.
President Donald Trump and senior administration officials have repeatedly criticized Powell for not lowering interest rates, given that inflation is hovering close to the central bank’s 2 percent target, and the labor market remains in a solid position.
The White House recently said the board also bears responsibility for not reducing the key policy rate earlier.
“A different Fed chair is a kind of forward guidance. But as I reiterate to people all the time, it’s not just the Fed chair. It’s a committee,” Bessent told CNBC.
Trump has expanded his criticisms to the Federal Reserve as a whole.
In a June 30 Truth Social post, the president stated that Powell and the board “should be ashamed” for not cutting interest rates.
“Jerome ‘Too Late’ Powell, and his entire Board, should be ashamed of themselves for allowing this to happen to the United States,” he said. “The Board just sits there and watches, so they are equally to blame. We should be paying 1 percent interest, or better!”
The Federal Reserve Board contains seven members. Each member is identified as a governor and appointed by the president, serving a 14-year term. The board is led by a chair, who serves a separate four-year term.
Powell was first appointed to the board by President Barack Obama in 2012 to fill a vacancy left by Frederic Mishkin and was elevated to chairman in 2018 by Trump.
Trump selected Michelle Bowman in 2018 and Christopher Waller in 2020. President Joe Biden chose Michael Barr (2022), Lisa Cook (2022), Philip Jefferson (2023), and Adriana Kugler (2023).
The president and his team have been laser-focused on choosing Powell’s replacement. The Fed chair’s term expires in May 2026, and Trump has stated that he has a few candidates in mind.
According to Polymarket, the betting markets have identified some of the favorites, including former Fed Gov. Kevin Warsh (21 percent), Bessent (19 percent), National Economic Council Director Kevin Hassett (13 percent), and Waller (11 percent).
That said, with Kugler’s term set to expire next year—she replaced Lael Brainard, who became National Economic Council Director in the Biden administration—Trump administration officials are also eyeing a board seat.
“There’s a seat opening up, a 14-year seat opening up in January. So we’ve given thought to the idea that perhaps that person would go on to become the chair when Jay Powell leaves in May, or we could appoint the new chair in May,” Bessent said in an interview with Bloomberg TV last week. “Unfortunately, that’s just a two-year seat.”
Powell’s term on the board expires in January 2028.
Trump, meanwhile, has confirmed that he will not appoint anyone who opposes cutting interest rates.
“If I think somebody’s going to keep the rates where they are or whatever, I’m not going to put them in,” Trump told reporters in June. “I’m going to put somebody that wants to cut rates. There are a lot of them out there.”
Voices at the FOMC
In a July 3 interview with CNBC’s “Squawk on the Street,” Bessent pointed to the policy divergence between Trump and non-Trump appointees.
“I’ll let you read into that what you want,” he said.
In addition to shaping policy, Federal Reserve governors are voting members of the rate-setting Federal Open Market Committee, or FOMC.
But while Bowman and Waller have expressed support for lowering interest rates sooner, they have supported keeping the benchmark federal funds rate—a policy rate that influences business, consumer, and government borrowing costs—higher for longer at the FOMC meetings.
Last month, the two Federal Reserve officials said they would favor pulling the trigger on a rate cut at the July FOMC policy meeting.
Others, meanwhile, have beaten the patience drum, arguing that monetary policymakers can be patient and wait for more data before taking action.
Kugler says the central bank should keep rates steady amid tariff-driven upside inflation risks.
“I see greater upside risks to inflation at this juncture and potential downside risks to employment and output growth down the road, and this leads me to continue to support maintaining the FOMC’s policy rate at its current setting if upside risks to inflation remain,” Kugler said in a June 5 speech at the Economic Club of New York.
The projected effects of the president’s tariffs have not yet materialized in the hard data. Powell recently told lawmakers on Capitol Hill that he expected them to start showing up in the June and July data.
Next week, the Consumer Price Index (CPI) will be released for June. The Cleveland Fed’s Inflation Nowcasting Model projected that the annual inflation rate will rise to 2.6 percent, and the monthly inflation rate will jump by 0.3 percent.
CPI figures for July are then expected to stall, rising 0.1 percent, according to the regional central bank’s model.
At a Council on Foreign Relations event last month, Cook reiterated that monetary policy is well-positioned to respond to a wide array of economic situations.
“There is evidence that changes to trade policy are starting to affect the economy,” Cook said.
New CME FedWatch Tool data show that investors overwhelmingly expect the central bank to leave interest rates unchanged in a range of 4.25 and 4.5 percent. The futures market is penciling in a quarter-point rate cut in September, which would be the first since December 2024.
Powell noted that if tariff-driven inflation proves to be a one-time price adjustment or less severe than expected, he and his colleagues would support lowering the policy rate—even as early as July.
“I wouldn’t take any meeting off the table or put any on the table. It depends on how the data evolve,” Powell said on a panel at the European Central Bank forum in Portugal on July 1.
Why Bullion Beats Numismatics and Collectible for Your Safe or IRA
Precious metals continue to attract Americans seeking reliable ways to protect their wealth amid inflation, geopolitical risks, and stock market swings. Whether stored in a home safe or held inside a self-directed IRA, physical gold and silver deliver tangible value that paper or digital assets often lack. Yet investors must choose carefully between bullion—pure bars and coins valued mainly for their metal content—and numismatics or collectibles, where rarity, history, and collector demand heavily influence pricing.
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Bullion consists of refined precious metals in standard forms like one-ounce coins (American Gold Eagles, Silver Eagles, Canadian Maple Leafs) or bars. Their value tracks closely to the current spot price of the metal. A typical gold bullion coin trades near the live gold spot price plus a small premium. This structure keeps costs clear and predictable.
Numismatic coins and collectibles add substantial value from factors such as age, rarity, minting errors, or historical significance. A pre-1933 U.S. gold coin or graded proof piece can carry premiums of 30%, 50%, or even 200% above melt value. While this appeals to hobbyists, it creates complexity. Pricing depends on subjective grading, collector trends, and auction results instead of daily spot prices.
For investors focused on wealth preservation and retirement security rather than building a collection, bullion often delivers better results.
Lower Costs and Better Liquidity for Home Storage
When keeping metals in a home safe or private vault, liquidity and efficiency count. Bullion offers clear benefits:
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- Bullion prices remain transparent and update with global spot markets. You can track gold near current levels or silver accordingly and know exactly where your holdings stand. Numismatic values are priced by the Gold IRA companies with hefty margins applied.
- Standardized coins and bars store efficiently and divide easily for partial sales. Rare coins often need protective slabs and controlled conditions, adding hassle and expense.
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Stronger Fit for Precious Metals IRAs
Precious metals IRAs continue gaining traction as investors diversify retirement portfolios beyond stocks and bonds. IRS rules permit certain bullion products in self-directed IRAs if they meet purity standards (.995 fine for gold, .999 for silver) and are held by an approved custodian. Eligible items include American Gold and Silver Eagles plus many generic bars and rounds from recognized mints.
Numismatic and most collectible coins generally face heavy scrutiny from custodians due to valuation disputes and elevated markups. These higher premiums mean less actual metal ends up working inside the account.
Bullion avoids these issues. Its value links directly to verifiable spot prices, which simplifies reporting and lowers the risk of regulatory challenges. More of your IRA contribution purchases real metal instead of dealer profits or speculative upside. Over time, owning additional ounces that appreciate with the metal itself can create meaningful outperformance compared with high-premium alternatives that deliver fewer ounces.
Regulatory guidance from the CFTC and state securities offices repeatedly cautions against aggressive sales of expensive numismatics or “semi-numismatic” coins for IRAs. For retirement planning, transparent bullion from established providers reduces risk and aligns better with long-term goals.
How to Get Started with Bullion
Begin by clarifying your goals. Are you protecting savings in a safe, or moving part of a retirement account into a precious metals IRA? Focus on the number of ounces you can acquire at current prices rather than chasing marked-up collectibles.
Diversify sensibly: use gold for core preservation and silver for its blend of industrial and monetary qualities. Mix coins for easier divisibility with bars for lower per-ounce costs on larger buys. Arrange secure storage—whether at home with proper insurance or through professional facilities.
As economic uncertainties linger and faith in conventional assets erodes, bullion continues proving its worth as a dependable store of value. Its direct approach avoids the hype that sometimes surrounds collectible markets and keeps the focus on the metal itself.
For investors prepared to strengthen their portfolios, Advisor Bullion supplies the expertise and selection needed to acquire high-quality bullion efficiently. Whether building personal holdings or integrating metals into an IRA, their emphasis on transparent, investment-grade products helps secure more ounces today that support greater financial security tomorrow. In a complicated financial landscape, bullion’s clarity and reliability make it the smarter foundation for protecting what matters most.