US President Donald Trump took to social media on Wednesday to call for lower interest rates, linking the move to his administration’s ongoing tariff policies. “Interest Rates should be lowered, something which would go hand in hand with upcoming Tariffs!!!” Trump posted.

However, Federal Reserve Chair Jerome Powell made it clear that Trump’s demands would not influence the central bank’s decisions. Speaking before the House Financial Services Committee on the second day of his semiannual congressional testimony, Powell reassured lawmakers that the Fed remains committed to making independent decisions based on economic conditions.

“People can be confident that we’ll continue to keep our heads down, do our work and make our decisions based on what’s happening in the economy,” Powell stated.

Powell has previously indicated that after three rate cuts last year, the Fed would take a wait-and-see approach before making further adjustments. The central bank remains focused on its 2% inflation target and many officials prefer to observe how Trump’s tariffs and economic policies impact growth before making any further moves, AP reported.

On Wednesday, fresh government data showed inflation rising, with consumer prices increasing by 3% in January compared to a year earlier. This marks an increase from September’s 2.4%, which was the lowest level in three and a half years. The rise in inflation reduces the likelihood of the Fed implementing another rate cut in the near future. The Fed’s key interest rate influences borrowing costs across the economy, including for mortgages, auto loans and credit cards.

Powell noted that while the Fed has made “great progress” toward its inflation target, it has not yet fully achieved its goal. “Today’s inflation print … says the same thing,” he said, reiterating that the central bank intends to keep rates restrictive for now.

The Fed lowered its key interest rate from 5.3% to 4.3% last year. While officials previously forecast two rate cuts for 2024, some economists believe the Fed may hold steady for the year, with Wall Street predicting just one cut in October.

(With inputs from agencies)