J.P. Morgan warned in a note that Trump's pressure on the Federal Reserve and threats to fire Chair Powell could undercut central bank independence and increase inflation risks.

AP reporter Chris Rugaber explains the role of the Federal Reserve and why an independent Fed is important. (AP video: River Zhang)

While that would set a tone at the board of governors, whose seven members are permanent members of the Federal Open Market Committee, it won't necessarily translate entirely into monetary policy ( more toward bank reserve rates ).

The latest Federal Reserve study of economic conditions reveals that businesses that did not raise prices or pass on the impact of tariffs to their customers are likely to take a hit on their profit margins.

A top Federal Reserve official said late Thursday that the central bank should cut its key interest rate later this month, carving out a different view than that of Chair Jerome Powell, who has been harshly criticized by the White House for delaying rate cuts.

Former president of the Federal Reserve Bank of Cleveland Loretta Mester says it's important that the Fed stays independent and that fiscal politics should not interfere with monetary policy makers and their decisions.

Michelle Bowman of the Fed emphasized financial inclusion and the need for innovation to serve unbanked populations at a conference.

While investors worry about the markets, the Federal Reserve Bank of Philadelphia is raising the alarm about another economic indicator: credit card payments. According to the central bank, more than one in 10 Americans paid only the monthly minimum on their credit card debt in the fourth quarter of 2024.