Former U.S. President Donald Trump has called on the Federal Reserve to cut interest rates as his administration prepares to introduce a new round of tariffs. In a post on Truth Social, Trump stated that the Fed should lower rates as U.S. tariffs gradually impact the economy. He urged the central bank to “do the right thing” and referred to April 2nd as ‘Liberation Day in America’.
Trump’s comments come as the Federal Reserve has decided to keep interest rates steady for the second consecutive meeting. Fed Chair Jerome Powell acknowledged that tariff-related uncertainties were affecting economic forecasts and contributing to inflation in goods, but he suggested these effects might be temporary.
The scope of the new tariffs to be unveiled on April 2 remains unclear, but Trump has hinted at “reciprocal” tariffs against select nations. The nations and products to be targeted have not been specified.
Trump has regularly sent mixed signals on the Fed at times encouraging rate cuts and at other times shying clear of direct intervention. His economic advisor Kevin Hassett meanwhile reaffirmed that the White House appreciates the independence of the Fed. But he also differed with the Fed’s forecast of 2.5% economic growth compared to 1.7% by Fed officials.
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Source: Moneycontrol.
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