Trump may succeed in his clash with Jerome Powell, but he could still face defeat in his struggle against interest rates.

Inside the Latest Tensions Between Trump and the Fed

This article was first featured in the Business Insider Today newsletter.

The Power of Visual Communication

While a single image can convey a powerful message, a video can make an even greater impact.

When faced with the possibility of a criminal investigation, Federal Reserve Chair Jerome Powell opted not to issue a written statement. Instead, he addressed the public directly on camera, responding to what he called ongoing pressure and threats from the Trump administration.

This approach was unusual for Powell, who is typically known for his calm and deliberate communication style. However, experts in leadership and communication told BI’s Ana Altcheck and Tim Paradis that the video allowed Powell to maintain composure while also highlighting the gravity of the situation.

If you need a recap, here’s the background on Powell’s Senate testimony that prompted the DOJ’s investigation.

Trump’s Confrontational Approach

Powell’s response is particularly notable as former President Donald Trump continues to challenge leaders in various industries. For example, in the oil sector, Trump recently stated he is “inclined” to keep ExxonMobil out of Venezuela after the company’s CEO described the country as “uninvestable.”

This isn’t the first time Trump has used such tactics. He’s employed similar strategies before.

As BI’s Peter Kafka notes, “Trump often declares what he wants to see happen, sometimes using questionable reasoning, and then applies pressure to achieve his goals.”

This approach is part of a broader shift in American capitalism under Trump, where the government may take stakes in private companies and exert influence over institutions that traditionally operate independently. Business Insider is tracking these developments in its series on “The Future of Capitalism.”

Interest Rate Battles: Who Will Prevail?

Even if Trump succeeds in his dispute with Powell, he may still fall short in his push for lower interest rates.

At the start of the year, investors anticipated two typical rate cuts from the Federal Reserve in 2026. Now, JPMorgan is casting doubt on whether even one cut will occur.

With robust job creation and GDP growth, and inflation remaining above 3%, JPMorgan now expects the Fed to keep rates unchanged throughout the year—even if Trump appoints a more dovish Fed chair.

Michael Feroli, JPMorgan’s chief US economist, wrote, “Given the expected economic environment, we don’t believe a new, more rate-cut-friendly Fed chair would be able to persuade the FOMC to lower rates.”

To complicate matters further, Torsten Sløk, chief economist at Apollo Global Management, predicts there could even be an increase in rates.

Sløk points to the surge in borrowing driven by AI investments, which is leading to more corporate bonds being issued. This influx of investment-grade bonds could attract investors away from Treasurys, potentially pushing interest rates higher.