A familiar scenario is recreated as Trump calls for the Federal Reserve to lower interest rates.
1min read President Trump said the Federal Reserve should cut interest rates as he clashed with the central bank over its tariffs, as officials weigh the economic costs of their moves.Trump, who repeatedly pressured the Fed to cut rates during his first term, said in a post on Truth Social: "As the US tariffs start to move into the economy (relax!) the Fed cutting rates would be much better. Do the right thing. April 2nd is the liberation of America!!"The post came as the US prepared to announce a new round of tariffs, as Fed chairman Jerome Powell said the tariffs were clouding forecasts.The Fed held its benchmark rate steady as expected for a second consecutive meeting, and Powell downplayed concerns about a slowdown but acknowledged that uncertainty over tariffs was a factor that was already pushing up commodity inflation, though possibly only temporarily.The Trump administration is preparing to announce a new round of tariffs on April 2, though the scope is unclear. Trump has promised at least some “reciprocal” tariffs on some countries, though he has not specified which countries or at what pace.Trump has sent mixed messages on the Fed, sometimes calling for rate cuts and sometimes rejecting intervention.Earlier on Wednesday, Trump’s national economic adviser, Kevin Hassett, told reporters that the president and White House officials “are very respectful of the Fed’s independence”.Still, he made clear to reporters that he disagreed with the Fed’s growth forecasts, and expected the US economy to grow 2.5 per cent, compared with the 1.7 per cent currently forecast by Fed officials.
Ask Aime: How will the new round of tariffs announced by the U.S. on April 2 affect the stock market?
