President of the United States Donald Trump on Friday, April 4, called on Federal Reserve Chairman Jerome Powell to cut interest rates.
It is worth noting that the mentioned call was made at a time when there is a high level of turbulence in the markets, and concerns about accelerated inflation have increased significantly against the background of the reciprocal tariffs announced this week by Mr. Trump.
The US president published a post on the Truth Social virtual platform, in which he noted that this would be a perfect time for Jerome Powell to cut interest rates. According to Donald Trump, the head of the central bank of the United States is always late, but he could now change his image, and quickly.
Also in the mentioned post, Mr. Trump said that over the past two months, US energy prices have fallen, borrowing costs are down, the cost of eggs has decreased by 69%, the inflation declined, and jobs are up. He described the mentioned indicators as a big win for America. In the context of the statement that it was time to cut interest rates, Donald Trump also called on the Fed chairman to stop playing politics.
Jerome Powell on Friday told business journalists in Arlington, Virginia, that the United States central bank was well positioned to wait for greater clarity before making changes such as lowering borrowing costs. He also noted that the reciprocal tariffs announced by Donald Trump turned out to be significantly higher than expected.
According to the CME’s FedWatch tool, movement in the fed funds futures market implies that traders currently expect at least four interest rate cuts of 0.25 percentage points from the central bank of the United States in the current year.
As we have reported earlier, Fed Holds Interest Rates Steady.
