U.S. Federal Reserve Chair Jerome Powell and U.S. President Donald Trump.
Craig Hudson | Evelyn Hockstein | Reuters
President Donald Trump on Friday called for Federal Reserve Chair Jerome Powell to cut interest rates.
“This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always ‘late,’ but he could now change his image, and quickly,” Trump said in a post on Truth Social. “Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months – A BIG WIN for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”
Trump’s post comes as global equity markets are selling off sharply. The president’s new tariff policy, unveiled on Wednesday, has raised concerns about a global economic slowdown.
The new trade policies may also be a barrier that keep the Federal Reserve from cutting. The central bank has paused its rate cuts in recent meetings, in part because progress on reducing inflation appeared to have plateaued. The new tariffs could lead to a widespread rise in prices, at least temporarily, that further complicates the inflation picture.
On Friday, Powell told business journalists in Arlington, Va., that the Fed was “well positioned to wait for greater clarity” before making changes like rate cuts.
This is breaking news. Please refresh for updates.