U.S. President Donald Trump has intensified pressure on the Federal Reserve, demanding an emergency reduction in the key interest rate. At a meeting in the White House, Trump urged the Fed to hold a “special meeting” dedicated to making a decision on lowering the rate.
This is reported by Business • Media
“When is a better time to lower interest rates than now? Even a third grader understands that,” Trump said, commenting on the current economic situation.
Previously, the president has repeatedly criticized Fed Chair Jerome Powell, emphasizing that the current monetary policy, in his opinion, harms the economy and national security of the United States. Back in January 2026, Trump called on the Fed to set a “significantly lower” interest rate that would be the lowest in the world, in order to, as he stated, enhance the competitiveness of the American financial system.
Market Reaction and Fed Position
Despite the political pressure, financial markets do not expect rapid changes in the Fed’s monetary policy. According to CME futures, the probability that the rate will remain in the range of 3.50–3.75% at the next meeting is nearly 99%.
Similar expectations are observed for the meeting in April 2026, where markets estimate the chances of maintaining the rate at the current level at approximately 97%. This cautious approach is explained by overall macroeconomic uncertainty.
Inflation Risks and External Factors
Additional pressure on the Fed is being exerted by rising oil prices, occurring against the backdrop of escalating relations between the U.S. and Iran. The increase in energy prices could lead to higher transportation and production costs, threatening to exacerbate inflation.
According to Trading Economics, inflation in the U.S. in February 2026 was 2.4%. However, analysts predict that this figure may rise in March, which is likely to lead the Fed to refrain from lowering the rate despite political pressure.
In February 2026, the Fed released the minutes from the Open Market Committee meeting, indicating that some members even supported raising the interest rate in light of inflationary threats. However, these sentiments were formed before the escalation of the U.S. and Israel conflict with Iran.
It is worth noting that recently, the Kraken exchange gained access to the main payment systems of the Fed.