Federal Reserve Chair Jerome Powell faces intense scrutiny and political pressure from President Donald Trump, who demands lower interest rates amid a backdrop of economic uncertainty and a criminal investigation into Powell's leadership.
In January 2026, the Federal Reserve opted to maintain interest rates between 3.5% and 3.75%, marking a pause after several rate cuts in 2025, with key indicators suggesting stabilization in the job market and easing inflation.
The Fed's decision has sparked debate over its independence, as the ongoing political drama raises concerns about the central bank's ability to operate free from external influence.
Stock markets reacted positively, hitting record highs following the announcement, while gold prices soared past $5,300 per ounce as investors turned to safe-haven assets amid a declining U.S. dollar.
Trump's assertion that the dollar's value is "great" has led to market volatility, contributing to the currency's drop to a four-year low and fueling speculation about financial stability.
The narrative highlights a delicate balance between economic policy and political influence in the U.S., with the Fed caught in the crossfire of heightened expectations and uncertainties in the economic landscape.