U.S. President Donald Trump has once again urged the Federal Reserve to immediately lower the key interest rate. He insists on holding a special Fed meeting to make this decision, increasing pressure on the regulator amid economic uncertainty.
This is reported by Finway
Trump Demands Urgent Action from the Fed
“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.
The White House chief has repeatedly criticized Fed Chairman Jerome Powell, believing that the agency’s policies harm the economy and the national security of the country. Back in January 2026, Trump called for lowering rates to minimal levels globally, as he believes this would maximize the potential of the U.S. financial system.
Markets Remain Skeptical
Despite the political pressure, financial markets do not expect changes in monetary policy anytime soon. According to CME futures contracts, the probability of keeping the rate in the range of 3.50–3.75% at the next Fed meeting is nearly 99%. Similar expectations prevail for the April meeting, with a 97% probability of no changes, indicating the regulator’s caution amid macroeconomic uncertainty.
The situation is complicated by rising oil prices, driven by geopolitical tensions between the U.S. and Iran. The increase in energy costs could intensify inflationary pressure due to higher transportation and production expenses.
According to Trading Economics, the inflation rate in the U.S. was 2.4% in February 2026, but analysts predict an acceleration of inflation as early as March. In such conditions, the Fed is likely to maintain a cautious stance and refrain from changing its policy, even in the face of political pressure from the president.
On February 18, the minutes of the FOMC meeting were released, indicating that some members advocated for a rate hike due to inflation risks. However, these discussions took place before the escalation of the U.S.-Iran conflict, which now adds new challenges for the regulator’s economic policy.