Trump is the only sitting US President to publicly use the threat of firing the Fed chief to force the Fed to lower key interest rates.
According to the current US Constitution, the FED, as the national central bank, is guaranteed independence in function, which means it has the right to decide and implement monetary policy independently of politics, not subject to any decisions by lawmakers, executives and judges.
Mr. Trump demanded that the Fed lower the basic interest rate, find ways to put pressure and increase pressure on the Fed, demand that Fed Chairman Jerome Powell resign and threaten to fire him, even though Mr. Trump nominated Mr. Powell as Fed Chairman in 2017 and that Mr. Powell's term as Fed Chairman will end in the middle of next year.
However, the main reason for the FED not to or has not cut interest rates is that the FED relies on statistical data on the US economic growth situation, unemployment, inflation rates and expectations of the US economy.
The US economy has grown quite steadily. Many jobs were created. The inflation rate is even higher than the 2% target. The US economy and financial markets all believe that the FED has not cut the basic interest rate.
Meanwhile, the FED is still very concerned about the negative consequences of Mr. Trump's tariff policies for the US economy and consumer prices in the coming time. Therefore, the FED must be cautious.
Mr. Trump really wants and needs it, but the Fed does not see it as a haste. Moreover, the FED used the fact that it had not cut interest rates this time to show that it was not retreating and that if there was a basic interest rate cut, it would not be considered un steadfast in functional independence.
