President Donald Trump is badgering the Federal Reserve to cut interest rates, but even if the Fed gave in to the pressure, it wouldn’t necessarily lead to lower borrowing costs for consumers.

Now, the markets are anticipating that President Trump is putting pressure on Chairman Powell to cut interest rates, even if the Fed doesn’t think it’s the right time to do so. But why is that the case and can he pressure the Fed Chair to take action?

Jerome Powell's current term as the Federal Reserve Chair is up in May 2026, and he's said Trump firing him before then would be against the law.