President Donald Trump has urged Federal Reserve Chair Jerome Powell to cut interest rates, citing improving economic indicators and calling on him to “stop playing politics.” The comments come as global markets sell off due to Trump’s new tariff policy, which may complicate the central bank’s ability to make rate cuts.
Trump believes the timing is right for the Fed to reduce interest rates, given declining energy prices, jobs growth, and decreasing inflation. However, Powell has expressed caution, stating that the Fed needs greater clarity before making changes.
Market expectations suggest at least four quarter-point rate cuts this year, but the new tariffs could raise concerns about temporary price increases, complicating the inflation picture. Trump downplays market volatility, comparing it to a patient recovering from surgery. The Fed chair declined to respond to the president’s comments, citing a practice of not engaging with elected officials.
The jobs report released Friday showed a slight increase in unemployment to 4.2%, but the rise was more than expected. The report does not reflect the impact of Trump’s tariffs announced this week.
Source: https://www.cnbc.com/2025/04/04/trump-tariffs-jerome-powell.html