WASHINGTON (TNND) — A potential storm is brewing between President Donald Trump and the politically independent Federal Reserve after the central bank decided against an interest rate cut Wednesday.

“With our policy stance significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance,” Fed Chair Jerome Powell said.

The decision was what investors and economists expected after a series of high readings of inflation and strong jobs reports.

After implementing three rate cuts at the end of 2024, the Fed aims to hold the federal funds rate steady to cool demand and slow inflation, even though it results in high mortgage and credit card rates for consumers. Powell and his colleagues have been focused on stabilizing prices without pushing the economy into a recession.

President Trump, who first nominated Powell for Fed chair in 2017, has been vocal about his desire for lower interest rates.

“With oil prices going down, I’ll demand that interest rates drop immediately. And, likewise, they should be dropping all over the world,” Trump said in his virtual remarks to the World Economic Forum last week.

When Powell was asked to respond to what Trump said, the Fed chair it would be inappropriate to comment on what the president said.

“The public should be confident that we will continue to do our work as we always have, focusing on using our tools to achieve our goals and really keeping our heads down and doing our work and that’s how we best serve the public,” Powell said.

Powell added that he’s had no contact with Trump.

The economic pain that comes with high interest rates is antithetical to Trump’s promise to Americans to quickly reduce their cost of living.

“It could turn out to be a very, you know, awkward situation that develops if President Trump keeps calling for lower rates,” former Atlanta Federal Reserve President and CEO Dennis Lockhart told Fox Business.

Treasury Secretary Scott Bessent has sent mixed signals about the prospect of an independent Fed under a Trump presidency. During his confirmation hearing earlier this month, Bessent told senators, “I think on monetary policy decisions, the (Federal Open Market Committee) should be independent.”

However, in October, he acknowledged Trump’s interest in influencing rates.

“He wants to be involved in the conversation. He has very well-formed opinions,” Bessent told Bloomberg.

The Fed’s next interest rate decision will come at the end of their next meeting in mid-March.