The president prefers low interest rates. But the Federal Reserve Act protects the Fed chair's removal. Long-term rates are set by financial markets and sensitive to inflation expectations.

Trump has criticized Powell for months because the chair has kept the short-term interest rate the Fed controls at 4.3% this year, after cutting it three times last year. Powell says the Fed wants to see how the economy responds to Trump’s sweeping tariffs on imports, which Powell says could push up inflation.