Despite roaring economic growth and direct pressure from President Trump, Federal Reserve Chairman Jerome Powell held firm on Wednesday, refusing to cut interest rates and defying expectations that the central bank would ease monetary policy.

The economy posted a robust 3% GDP growth for the second quarter—well above expectations—and retail sales and employment numbers have remained solid. President Trump, touting the success of his economic policies, took to Truth Social to demand a rate cut, declaring, “‘Too Late’ MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!”

But Powell, who has repeatedly clashed with Trump over monetary policy, pushed back. Despite the strong economic indicators, Powell cited inflation as the sticking point. His threshold for cutting rates remains a 2% inflation target. But with the Consumer Price Index climbing to 2.7% in June, Powell argued that acting too soon could overheat the economy.

The decision wasn’t unanimous. Fed governors Christopher Waller and Michelle Bowman both broke ranks and voted in favor of a rate cut—signaling growing pressure inside the Federal Reserve itself to pivot. According to economic analyst Carol Roth, that split vote hints at what may come next.

“With two dissents from Fed governors Waller and Bowman, the odds of a September rate cut are likely to increase in the days ahead,” Roth told Blaze News. “The biggest challenge to a Fed rate cut today was actually good economic news… it’s difficult to argue the Fed is holding back growth when the data keeps beating expectations.”

But Trump is clearly not satisfied. Beyond rate policy, he’s also taken aim at Powell over the $2.5 billion renovation of the Federal Reserve headquarters—an expense critics inside the Trump administration have suggested could involve fraud. Calls for Powell’s resignation or even investigation have surfaced, though both men attempted to downplay tensions during a photo op at the construction site Thursday.

Still, the president hasn’t let go of the idea of firing Powell. Though he originally appointed him during his first term, Trump has repeatedly floated replacing Powell if the chairman continues to resist pressure. Powell, for his part, insists he won’t step down and won’t be influenced by political noise.

“We’re never going to be influenced by any political pressure,” Powell said in April. “People can say whatever they want… but we will do what we do strictly without consideration of political or any other extraneous factors.”

It’s a high-stakes standoff with serious implications for American borrowers and homeowners. While the Fed doesn’t set mortgage rates directly, it influences them through the federal funds rate, which affects borrowing costs across the economy. With interest rates still high, refinancing remains out of reach for many middle-class families.

If inflation ticks downward in the next CPI report due in August, the internal dissent within the Fed may finally tip the scale in Trump’s direction. For now, the economic boom continues, but the political pressure on Powell is heating up just as fast.