A Fed policy rate that low is not typically a sign that the U.S. is the "hottest" country in the world for investment, as Trump has said.

Investors, not the Fed, control the interest rates that matter most to businesses and consumers. They might demand higher returns if the central bank’s independence comes into question.

The White House has been trumpeting the absence of tariff-related price hikes as a sign that the president’s agenda is succeeding.

President Donald Trump wants the Federal Reserve to slash interest rates by three percentage points, a massive cut that could push borrowing costs back to pandemic lows. With two seats at the Fed likely opening up soon, he may finally get the chance to reshape the central bank and force the aggressive easing he is demanding.

The central bank remains cautious, even as calls for rate cuts grow louder from the White House and other policymakers.

Trump and the Trump administration have increasingly turned their fire on Powell and his leadership of the central bank.

If Trump did win, and rates rose the way investors seem to expect, it would likely put Trump on wartime footing from Day One. Trump has a long history of bashing the Fed and its chair, Powell, for ...