Wells Fargo strategists predict the Federal Reserve will implement one more interest rate cut before Jerome Powell's term as Chair ends in May. Analysts expect a 25-basis point reduction, followed by another cut this summer under new leadership. This forecast comes amid ongoing scrutiny of the central bank's independence.

Powell's tenure has been marked by tension with the Trump administration, which recently launched a criminal investigation he calls a pretext to influence policy. President Trump has repeatedly criticized the Fed for not cutting rates aggressively enough. This political pressure raises concerns about the Fed's ability to set policy free of political influence.

Wells Fargo notes the FOMC has been divided recently, while DOJ subpoenas increase pressure on policymakers. Softening labor data and easing inflation give the Fed room to continue nudging rates toward neutral. CME FedWatch shows markets expect steady rates this month, but cuts later this year.