"Toward the end of the year, the housing market may become a bigger deal for inflation than tariffs," Comerica Bank chief economist Bill Adams said.

Even if Trump fails to remove Powell, he may still try to undermine the Fed chairman by announcing his replacement soon — way before Powell’s term expires in May 2026, says OCBC’s .

The case for a U.S. interest rate cut remains unresolved as Federal Reserve officials head into their policy meeting later this month, with data showing fresh signs of higher inflation and President Donald Trump intensifying his demands for lower borrowing costs.

The Fed Chair on Tuesday reiterated the central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering rates.

Donald Trump is struggling to get the Federal Reserve to cut interest rates, but policymakers around the world won’t need so much convincing.

"With a striking of the pen," the Federal Reserve can save the federal government at least $1T in interest rate payments, President Donald Trump said on Tuesday, repeating one of his beefs with Fed Chair Jerome Powell for holding rates unchanged since the start of the year.