Increasing political pressure that threatens to undermine the Federal Reserve’s independence may significantly damage the economy in the long term, even as lower interest rates resulting from this pressure will likely lead to a short-term economic boost. Federal Reserve Chairman Jerome Powell, President Donald Trump, and Sen. Tim Scott (R-SC) visit the Federal Reserve on July 24. Whatever the future of interest rate policy, inflation remains a concern, and any excessive cut in such rates wouldn’t help. “In any case, I don’t anticipate drastic declines in short-term interest rates, but potentially greater declines than if the board were unchanged. If eroded, markets will demand far higher interest rates for longer-term debt.”U.S. inflation accelerated in August at a speed likely to preserve caution about any quickening pace in reducing interest rates.