US President Donald Trump has commended the Federal Reserve for leaving interest rates unchanged, marking an early shift from his previous demands. In a recent exchange with reporters, Trump said holding interest rates at 4.25%-4.5% was the correct move for the Fed.
The statement contrasts with Trump’s earlier statement to the World Economic Forum in Davos, Switzerland, where he advocated for immediate rate cuts. However, economists believe markets will not see rate reductions until at least June due to Chairman Jerome Powell’s assertion that the Fed doesn’t need to rush into lowering rates further.
Trump’s comments also raised concerns about his plans to impose tariffs on Canada, Mexico, and China, which could potentially drive up inflation rates already showing signs of easing.
Source: https://www.cnbc.com/2025/02/03/in-a-switch-trump-approves-feds-decision-to-hold-interest-rates-steady-.html