Former U.S. President Donald Trump has stepped up public pressure on the Federal Reserve, arguing that "there is no inflation" and that "every indicator" points to a sharp interest-rate reduction. Trump said the Fed’s benchmark federal funds rate, currently in a 4.25%–4.50% range, should be about three percentage points lower—a move he contends would lower government borrowing costs and bolster growth. The remarks come just days before Chair Jerome Powell is due to deliver his keynote address at the Federal Reserve’s annual Jackson Hole symposium, a venue that often signals shifts in monetary policy strategy. Investors are already on edge over whether the Fed might alter its framework to keep inflation on target, and Trump’s comments have intensified debate about the central bank’s independence amid mounting federal debt. Analysts warn that sustained political pressure to suppress borrowing costs risks ushering in a period of “fiscal dominance,” where managing the government’s financing needs overrides the Fed’s inflation mandate. For now, Powell has stressed the central bank will base decisions on economic data rather than fiscal considerations, but markets will watch Friday’s speech for any indication of how the Fed balances those competing demands.