Last year, Trump suggested the U.S. president should have "at least" a say over setting interest rates, something that would end the Fed’s independence, though Powell has vowed to serve out his term, which is due to end in 2026, and Trump has said he doesn’t plan on attempting to fire Powell.

The Fed faces complex decisions as it decides how quickly to cut rates or whether to raise them amid Trump's tariffs and immigration crackdown.

The unexpected rise in price pressures prompted futures traders to increase the odds that the Federal Reserve will hold the benchmark rate at its current range beyond May.