WASHINGTON (AP) — On Wednesday, Federal Reserve Chair Jerome Powell responded to President Donald Trump’s recent suggestions for lowering interest rates, affirming that such calls would not sway the central bank’s decision-making.

Powell stated, “Rest assured, we will remain focused on our responsibilities and will make our decisions based on current economic conditions,” during a session with members of the House Financial Services Committee. This was part of his ongoing testimony before Congress.

Earlier in the day, Trump expressed on social media, “Interest Rates should be lowered, something which would align with upcoming tariffs!”

However, during a press conference last month, Powell indicated that the Federal Reserve, having already lowered its key interest rate three times late last year, was opting to pause further reductions while awaiting clearer signs that inflation is approaching its 2% target.

Many officials at the Fed are keen to observe how Trump’s policies, particularly the tariffs he has proposed and implemented, will impact the economy. There are concerns among economists that these tariffs could lead to a temporary rise in inflation.

On the same day, the government reported an increase in inflation, with consumer prices rising by 3% in January compared to the previous year, marking a rise from a 3.5-year low of 2.4% recorded in September. This increase further diminishes the likelihood that the Fed will reduce its key interest rate in the near future. The Fed’s rate plays a critical role in determining borrowing costs across the economy, affecting mortgages, auto loans, and credit card rates.

Last year, the Fed reduced its key rate three times, lowering it from 5.3% to approximately 4.3%. In January, officials indicated they would maintain this rate until inflation shows more significant decline. Although forecasts from December included two potential cuts for this year, some economists are now speculating that the Fed may hold its rates steady throughout the year.