Scott Horsley

Yeah, the Fed is cutting interest rates, but not as quickly as Trump would like.

Most forecasters think the Fed's going to hold rates steady when policymakers meet later this month because inflation is still too high.

And yesterday's cost of living report just cemented that expectation.

Trump wants much lower interest rates, and his administration's gone to extraordinary lengths to push the Fed in that direction.

An ominous example came over the weekend with news the Justice Department had launched a criminal investigation of the central bank, which Fed Chairman Jerome Powell dismissed as an effort to intimidate him and his colleagues.

Since then, a number of lawmakers and business people have come to Powell's defense, including the nation's top banker, Jamie Dimon of JPMorgan Chase.

Diamond warned the White House pressure campaign could actually backfire if people start to think the Fed's independence is in jeopardy.

It could ultimately lead to higher inflation and higher interest rates.

You're welcome.

Consumer prices in December were up 2.7 percent from a year ago, matching the annual increase of the previous month.

Prices rose three-tenths of a percent between November and December, led by rising costs for housing, food and energy.

Gasoline prices have fallen over the last year, but the cost of electricity and natural gas is way up.

Stubborn inflation is likely to make the Federal Reserve cautious about additional cuts to interest rates, despite pressure from President Trump.

On Sunday, Fed Chairman Jerome Powell said the Justice Department had launched an investigation of the central bank,

and suggested that's part of the administration's long-running pressure campaign to exert more control over interest rates.

Scott Horsley, NPR News, Washington.

You're including the Martin renovation.

That's our entire capital.

You just added in a third building is what that is.

That's a third building.