Trump said last week he would 'demand' lower interest rates.
Investors widely expect the Fed to hold interest rates steady, putting the central bank on a potential collision course with Trump. A longstanding norm of independence typically insulates the central bank from direct political interference.
"I'm going to ask Saudi Arabia and OPEC to bring down the cost of oil," Trump said, later adding: "With oil prices going down, I'll demand that interest rates drop immediately." Several past presidents have sought to influence the Fed's interest rate policy, including Trump, who repeatedly spoke out in favor of low interest rates during his first term.
"No," Powell told reporters assembled at a press conference in Washington, D.C., blocks away from the White House.The Fed retreated in its fight against inflation over the final months of last year, lowering interest rates by a percentage point. Still, the Fed's interest rate remains at a historically high level of between 4.25% and 4.5%.
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