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The president of the United States, Donald Trump, observes while signing an executive order in the Oval Office of the White House in Washington, USA, on January 31, 2025.
Carlos Barria | Reuters
President Donald Trump He agreed with the Federal Reserve for its decision last week to leave interest rates without changes, an early pivot of its previous demand for the Central Bank to be relieved “immediately.”
In an exchange with journalists on Sunday, Trump said Holding its key loan level In a range between 4.25% -4.5% was the correct movement for the Fed.
“It is not surprised,” he said about the decision, according to multiple reports. “Keeping rates at this point was right.”
The statement was in marked contrast A Trump delivered When he speaks remotely to the World Economic Forum in Davos, Switzerland. In an appearance of January 23, Trump said “would demand that interest rates decrease immediately.”
The president has no direct authority over the Fed, although the president and other members of the Board do. The current president Jerome Powell is a Trump candidate and a frequent objective of the president’s criticism.
The markets do not expect the Fed to be lower rates up to at least June. In his press conference after the meeting last Wednesday, Powell said repeatedly that the Fed does not need to be in a “haste” To lower more after shaving a complete percentage point of the Fed Fed Rate from September to December in 2024.
The Fed decision making became potentially more complicated after Trump on Saturday said he would impuse aggressive tariffs against Canada, Mexico and China, the three largest American commercial partners. Economists concern tariffs generate prices at a time when inflation has shown signs of relaxation.
