The Federal Reserve's current policy rate of 3.50%-3.75% is "arguably no longer restraining activity all that much, if at all," Kansas City Fed President Jeffrey Schmid said on Wednesday. "With growth showing momentum and inflation still hot,

Warsh’s repeated focus on the issue could shape the Fed’s policy approach going forward, wrote Wells Fargo Chief Economist Tom Porcelli. Powell has been known for “insurance cuts” — lowering rates slightly to get ahead of brewing risks in economic data. But those might now become less common, Porcelli wrote.

Powell left some advice to the next Fed chair. "Don't get pulled into elected politics," Powell said. "Don't do it."

After the Federal Reserve's rate cuts last year, it's still uncertain how restrictive the central bank's current 3.50%-3.75% policy rate is, Dallas Fed President Lorie Logan said on Tuesday.

The rate-setting committee remains split between those opposed to further cuts until inflation comes down, and those who want to lower rates to further support hiring.

The conflict between President Trump and Federal Reserve Chair Jerome Powell continues, as the Fed maintains steady interest rates despite political pressure.