The right to freedom of speech allows Trump to make demands of the Fed to his heart's content. But legally, he cannot compel the central bank to lower its benchmark interest rate. The Fed has the right to act independently, and its aim is to promote a healthy and stable economy by keeping inflation in check.

Powell has said politics don't play a part in Fed rate decisions. He and his colleagues have held the key overnight borrowing rate in place since December, though markets largely expect a cut is on the way not at the Fed's July meeting, but in September.

Office of Management and Budget Director Russ Vought ratcheted up pressure on Federal Reserve Chairman Jerome Powell on Thursday, accusing him of having “grossly mismanaged” the central bank. Vought sent a letter to Powell probing him with questions over the renovation of the Fed’s headquarters in Washington,