Published Date: 05.04.2025 05:42 / Politics

Trump Pushes Fed for Rate Cut

Trump Pushes Fed for Rate Cut

United States President Donald Trump on Friday publicly urged Federal Reserve Chair Jerome Powell to lower interest rates, calling the moment “perfect” for such action. In a post on Truth Social, Trump emphasized current economic indicators as justification for the cut, pointing to declining inflation, falling energy prices, and a surge in job growth over the past two months.

“He is always 'late,' but he could now change his image, and quickly,” Trump wrote, referencing Powell. “Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months – A BIG WIN for America,” he added, concluding with, “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS.”

Trump’s message comes just weeks after implementing a new wave of reciprocal tariffs, which some analysts suggest could pressure monetary policy decisions. The president’s remarks reflect his ongoing belief that lower interest rates would further boost economic momentum and benefit consumers and businesses alike.

Federal Reserve Chair Jerome Powell, however, recently stated that the central bank is not in a hurry to adjust rates. He reaffirmed that the Fed’s decisions are based on “hard data,” such as inflation trends and employment figures, rather than market expectations or political commentary.

The contrasting perspectives highlight ongoing tensions between the White House and the Federal Reserve over monetary policy. Trump has frequently criticized Powell in the past for what he perceives as overly cautious approaches to interest rates, especially during periods of strong economic performance.

While Powell has maintained the Fed’s independence and commitment to data-driven decisions, the political pressure from the executive branch adds a layer of complexity to future policy meetings. The next Federal Reserve announcement is expected in the coming weeks, with investors watching closely for any sign of a shift in direction.

In the meantime, Trump continues to tout recent economic milestones as a victory for his administration, using them as leverage in his call for immediate action from the central bank.