Jerome Powell isn’t the Fed chair, but he is still on the Board of Governors and has issued four dissents, though he has traditionally not gone over one dissent. No one has gone to four dissents since 1992. Powell had the lowest dissent rate of any Fed chair since 1978. President Trump won’t be happy. Jerome continues to weigh in as the opposition.
Powell opened the door to rate cuts as inflation threatens to exceed 4%.
BREAKING: The odds of the Fed HIKING interest rates in 2026 surge to a new high of 37%.
US treasury yields are now up to 2007 levels, inflation is heading above 4%, and rate cuts are no longer in discussion.
Talk about a turn of events. pic.twitter.com/QXYSskMBkG
— The Kobeissi Letter (@KobeissiLetter) May 19, 2026
This is worrisome news for a historically expensive stock market that was counting on several rate cuts in 2026-2027 to fuel the artificial intelligence (AI) data center build-out. With the FOMC’s easing bias potentially being removed, the prospect of rate hikes, not cuts, becomes more likely.