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The Fed kept its benchmark rate at 5.25–5.50% through 2025–2026 as the White House publicly demanded cuts. CPI inflation, after peaking near 8% in 2022, remained above the Fed's 2% target — the core reason the Fed cited for holding rates steady. Colored bands show presidential administrations; the Fed operates independently of the executive branch under statute.
The Federal Reserve's Inspector General released a report on September 30, 2026 finding no criminal misconduct by Chair Jerome Powell. Within hours, President Trump called for Powell's "forced" resignation. The Federal Reserve Act permits removal of a governor only "for cause" — a standard no court has ever interpreted to include policy disagreements. Powell's term as Chair runs through May 2026; his separate 14-year term as a Board governor runs through January 31, 2028.