President Trump is zeroing in on the Federal Reserve and setting up a fight with its leader, Jerome Powell.

The president is eager for the Fed to speed up planned interest rate cuts and ease pressure on the economy amid deepening concern about his trade agenda. The Fed, in turn, is preparing for a potential price shock driven by Trump’s tariffs, which would delay any rate cuts, even if the economy weakens.

Trump has shown so far only mild annoyance with the Fed. While he badgered the central bank after it held off on rate cuts Wednesday, he has held off on direct threats.

But as the White House takes aim at the independence of agencies, Powell is unlikely to bow to being forced out, even if tensions with the White House were to hit a critical point before his term is up next year.

Ian Katz, director at Washington research firm Capital Alpha Partners, said he doesn’t expect Trump to try to fire Powell, given the turmoil it could cause for markets.

Even so, Katz warned, “given how aggressive Trump has been in asserting as authority so far this term, you can't rule out anything.”

Trump has taken aggressive steps to increase his control of the federal government and reshape it in line with his political whims. The Trump administration has pushed vast cuts to major agencies, ousting thousands of nonpolitical employees.

The Trump administration has also imposed new rules on independent agencies, requiring them to submit proposed regulations to the White House for review before publication.

Trump and top economic officials have said their attempts to influence the Fed are limited to its regulatory oversight of big banks, not its control of monetary policy. But the president has nonetheless nudged the Fed toward cutting interest rates amid increasing concern about the economy.

Trump has doubled down on pressuring the Federal Reserve to cut interest rates, arguing that the costs of food — specifically, eggs — and........

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