Trump keeps pressuring the Fed to cut rates. Here’s why its independence matters

US President Donald Trump and Office of Management and Budget (OMB) Director Russell Vought (C) look on as Federal Reserve Chair Jerome Powell (2nd R) speaks with the construction manager as they tour the ongoing construction at the Federal Reserve in Washington, DC, on July 24, 2025. Trump arrived for a tour of the US Federal Reserve as the president escalates pressure on its chairman Jerome Powell over the central bank’s management of the economy. Trump — who wants to oust Powell for refusing to lower interest rates but likely lacks the legal authority — has threatened to fire the Fed chief over cost overruns for a renovation of its Washington headquarters. (Photo by ANDREW CABALLERO-REYNOLDS / AFP) (Photo by ANDREW CABALLERO-REYNOLDS/AFP via Getty Images)