US President Donald Trump is criticizing the Federal Reserve’s decision not to lower interest rates despite his tariffs on global trading partners. The Fed announced its stance just hours after Trump posted a message urging them to cut rates, citing an expected reduction in inflation due to lower oil prices.
The Fed’s restrictive policy has been a thorn in Trump’s side since he took office, with the President claiming to know more about interest rates than the central bank. However, progress on inflation has stalled, and Powell attributed this to the impact of tariffs, which have raised goods inflation.
Central bankers are cautious due to past experiences, including raising rates too soon during the pandemic, which led to inflation increasing further. The Fed is expected to make two quarter-point cuts in 2025 but is uncertain about their timing.
Powell acknowledged high levels of uncertainty and stated that the Fed would not be in a hurry to move unless there was more clarity on the economy’s trajectory. Trump’s comments have echoed sentiments from many economists and executives, who also underscored the complexity and unpredictability of current economic conditions.
Source: https://katu.com/news/nation-world/trump-calls-out-fed-for-not-cutting-rates-ahead-of-april-2-tariffs-inflation-interest-politics-bank-energy-policy