Last year, Trump suggested the U.S. president should have "at least" a say over setting interest rates, something that would end the Fed’s independence, though Powell has vowed to serve out his term, which is due to end in 2026, and Trump has said he doesn’t plan on attempting to fire Powell.

The Fed faces complex decisions as it decides how quickly to cut rates or whether to raise them amid Trump's tariffs and immigration crackdown.

President Donald Trump on Wednesday said that interest rates should be lowered and that would go "hand in hand" with his upcoming tariffs, despite economists' expectations that tariffs would fuel inflation and postpone rate cuts.

Federal Reserve Chair Jerome Powell said Tuesday the central bank doesn’t “need to be in a hurry” to resume its interest rate cutting campaign, noting officials reduced the rate significantly last year and the economy remains sturdy.