U.S. President Donald Trump responded when he met NATO Secretary General Mark Rutte at the Oval Office of the White House in Washington, D.C. on March 13, 2025.
Evelyn Hawkstan | Reuters
After the president was largely away from the Fed’s business in the first two months of his tenure, Donald Trump Central banks are being pushed to lower interest rates as support for their tariff plans.
exist Wednesday night about the truthTrump encouraged Chairman Jerome Powell and his colleagues to intensify policies as the administration enters the next phase of its active trade policy.
“As the Ukrainians begin to transition (easy!) into the economy, the Fed will better lower tax rates,” Trump wrote. “Do the right thing. April 2 is the U.S. liberation day!!”
The mission came only a few hours later on the FAP committee led by Powell Vote to keep its key interest rates stable But it shows that assuming a quarter-percentage point increase that policy makers prefer, it could drop twice between the end of the year and the end of the year.
The April 2 reference is when the government will reveal the results of a study of global trade, which could lead to further tariffs to promote what it considers to be unfair playing field.
In his Post-meeting press conferencePowell dealt with the tariffs multiple times, largely reaffirming their potential uncertain impact on the Fed’s current cautious position. Additionally, Powell said responsibilities could increase inflation in the short term But the impact will fade over time.
“I think it’s a basic case. But, as I said, we really don’t know. We’re going to have to understand how things actually work,” he said.
However, lower interest rates may be combined with tariffs to inspire more inflation. The market expects the Fed to wait until June to cut. The Fed’s lowered rates are not always going directly to lower lending rates. In the best case scenario, lower interest rates will help support prices that rise, which are expected to increase from the levy.
In contrast to his first term in office, so far, Trump has taken a development decision-making approach. In fact, Treasury Secretary Scott Bessent said the White House is more focused on Reduce fiscal revenue for 10 years Long-term borrowing costs that are lower than the Fed-controlled short-term federal funds rate.
Trump accused Powell and the Fed of raising interest rates last time, Call them “bone” a little bit And compare the chair with golfers who can’t push the rod.
The Federal Reserve forecast said Wednesday Full percentage points of cut In the next three years, the current target of capital interest rates is 4.25%-4.5%.
