US President Donald Trump has criticized the Federal Reserve, urging it to reduce interest rates amid escalating tariffs. The move comes hours after the Fed chose to leave borrowing rates unchanged.
Trump believes lower interest rates would better prepare the economy for tariffs set to increase over the coming weeks. He made this statement on Truth Social, where he also urged the central bank to “do the right thing.” This is not Trump’s first call for lower interest rates; in January, he also advocated for rate cuts in response to potential lower oil prices.
Federal Reserve Chair Jerome Powell faulted Trump’s tariffs for a significant part of recent inflation and advocated for a wait-and-see approach as new administration policies take hold. The Fed predicted weaker year-end economic growth and higher inflation than its December forecast.
The central bank’s decision has sparked debate among experts, with some warning that lowering rates to stimulate the economy could boost spending and drive up inflation. Others argue that raising rates to protect against tariff-induced inflation could slow the economy.
Despite this uncertainty, the economy remains in solid shape, with steady hiring, a low unemployment rate, and inflation below its goal of 2%. Trump’s comments on interest rates come as global trade tensions continue to escalate.
Source: https://abcnews.go.com/Business/trump-criticizes-federal-reserve-calls-lower-interest-rates/story?id=119982504