On Tuesday, Trump said Fed officials ”have to make their own choice” on rates but added that ”they should listen to smart people like me.” Trump has said the Fed should reduce rates by three full percentage points.

When asked what the signs would be that the Fed is no longer functioning independent of political pressure, Powell said, ”I don’t believe we’ll ever get to that place. We’re doing our work exactly as we always have now.”

The Fed’s move to cut rates puts it in a different spot from many other central banks overseas. Last week, the European Central Bank left its benchmark rate unchanged, as inflation has largely cooled and the economy has seen limited damage, so far, from U.S. tariffs. On Friday, the Bank of England is also expected to keep its rate on hold as inflation, at 3.8%, remains higher than in the United States.