President Donald Trump once again urged the US Federal Reserve to lower interest rates. He made this call on Wednesday, aiming to mitigate the economic impact of his tariffs. His comments came after the Fed decided to hold rates steady, reduce its growth forecast, and raise its inflation outlook.
Trump’s Disagreement with the Federal Reserve’s Decisions
Trump posted on his Truth Social site, demanding that the Fed “do the right thing.” His message followed the Fed’s decision to maintain current rates despite growing economic concerns. While the Fed has pencilled in two rate cuts for this year, Chairman Jerome Powell noted that “uncertainty today is unusually elevated,” with inflation on the rise.
Tariffs and Economic Uncertainty
Many economists have raised concerns that Trump’s tariffs could push the US economy into a recession. Trade retaliations from other countries further complicate the situation. Trump has acknowledged that the economy may experience “a little disturbance” due to his tariffs. However, he insists that the US is on the brink of a “golden age” of economic growth.
Trump’s Vision for April 2 and Interest Rate Cuts
Trump emphasized that April 2, the date he plans to implement “reciprocal tariffs” to reset global trade, will be a “liberation day” for the US economy. Along with these tariffs, he continues to push for a reduction in interest rates. In his post, Trump stated, “The Fed would be MUCH better off CUTTING RATES as US Tariffs start to transition (ease!) their way into the economy.”
Trump’s Ongoing Disagreement with Fed Rate Decisions
During his first term, Trump repeatedly disagreed with the Federal Reserve’s rate decisions. He consistently advocated for lower interest rates, believing it would stimulate economic growth. Now, with tariffs in play, he continues to pressure the Fed to adopt policies he believes will benefit the economy.
