Trump says that interest rates should be reduced to go to ‘hand’ with their tariffs

President Donald Trump changed positions again in the Federal Reserve, which indicates in a social media post on Wednesday that interest rates must go down.

“Interest rates must be lowered, something that would go hand in hand with the next tariffs! Let’s rock and roll, America!” The president said in a morning about Truth Social.

The comments arrive a day after the president of the Food, Jerome Powell, said Policy formulators do not need to be “hurried” To reduce rates as they observe progress in inflation. Other officials have said that they are also evaluating the potential impacts that tariffs will have on prices, although Powell has avoided commenting directly on the subject.

Trump’s publication also reflects a changing narrative of the White House when it comes to monetary policy.

Shortly after assuming the position, Trump demanded that interest rates be reduced “immediately”, although he has no direct authority over the Fed. Days later, he said that the Fed made the right decision by keeping the stable rates in their final meeting January.

In subsequent comments, the Treasury Secretary, Scott Besent, said the administration was more focused on reducing 10 -year treasure performance than the short -term Fed funds.

However, Trump’s comment indicates a reversal to press the Central Bank to relieve politics.

The market price implies that the Fed will remain on hold until June or July and then not reduced again for the rest of the year. Some economists, including those of Bank of America, think that the Central Bank will not be facilitated this year after taking the reference loan rate during the night by a complete percentage point in 2024.