Trump says Fed must cut rates as Tariff Push Heats Up

President Donald Trump claimed that the Federal Reserve should decrease interest rates, diverging from the US Central Bank, as experts assess the economic impact of his trade campaign. “The Fed would be MUCH better off CUTTING RATES as US tariffs begin to transition (ease!) into the economy,” Trump said on Truth Social. “Do the correct thing. “April 2nd is Liberation Day in America!!!” Trump’s remark Wednesday evening comes as his government prepares to impose a new round of tariffs, which Federal Reserve Chair Jerome Powell has indicated is looming over projections. As predicted, the Federal Reserve kept its benchmark interest rate unchanged for the second consecutive meeting.

Powell downplayed simmering fears about a slowdown but noted that tariff uncertainty contributed to goods inflation, which may be temporary. Trump’s government plans to unveil a new round of tariffs on April 2, though the exact breadth remains unclear. Trump has vowed “reciprocal” duties on at least certain countries, but his administration has not defined which ones or at what rates. Trump has often delivered contradictory signals about the Fed, asking for cuts but failing to act. On Wednesday, Trump’s top economic advisor, Kevin Hassett, told reporters that the president and White House officials “very much respect the independence of the Fed.”