Analyst: From Advisor Picks to Inflation Gauge, Powell May Reveal Fed Overhaul Hand at First Presser

June 17 — CNN reporter Bryan Mena notes that while Powell hasn’t been able to deliver the interest rate cut Trump demanded single-handedly, he’s made it clear the Federal Reserve (Fed) is abandoning business as usual. Powell has brought on two conservative policy veterans as interim advisors to the central bank: Paul Winfree and Daniel Haile. He’s also pointed to “a large number of redundant personnel” at the Fed, hinting at a potential major reshuffle of the roughly 3,000 employees based at the Fed’s Washington, D.C., headquarters. Powell launched a downsizing process last year to align with similar moves across the broader U.S. federal government. On the inflation front, Powell has proposed Fed officials rethink how they measure inflation, shifting focus to the “trimmed mean” inflation indicator. During his April confirmation hearing, he explained these metrics capture “the underlying inflation rate, not one-off price swings from geopolitical events or changes in beef prices.” With his new advisors now in place, talks about “institutional reform” at the Fed are already underway. Powell’s upcoming press conference is expected to mark the first time he clearly signals how far he intends to reshape the Federal Reserve.