The Federal Reserve should resist pressure from Trump and defend its independence, experts say

President Trump had a message last week for the Federal Reserve while at the annual World Economic Forum gathering in Davos, Switzerland: He plans to "demand that interest rates drop immediately." 

Mr. Trump may be in for disappointment. The Federal Reserve widely expected to keep its benchmark rate steady when it announces its latest interest rate decision today at 2 p.m. Eastern Time. Economists aren't penciling in a 2025 reduction until at least May, according to economists polled by financial data service FactSet. 

Federal Reserve Chair Jerome Powell has over the years steadfastly defended the central bank's independence. Most recently, he underlined at a New York Times event in December that insulating the Fed from political influence is "for the benefit of all Americans," allowing it to make decisions based on economic data rather than at the behest of elected officials. The Fed's independence allows it to pursue its dual mandate — to keep inflation low and the labor market at full employment — without political pressure, economists concur.