Trump has criticized Powell for months because the chair has kept the short-term interest rate the Fed controls at 4.3% this year, after cutting it three times last year. Powell says the Fed wants to see how the economy responds to Trump’s sweeping tariffs on imports, which Powell says could push up inflation.

President Trump's attacks on the Fed's independence are escalating, and are spurred by his desire to dramatically lower benchmark interest rates. Gregory Daco from EY Parthenon told Reuters if monetary policy were to ease significantly it would risk 'inflation de-anchoring to the upside' and be a big hit to consumers and businesses.