President Donald Trump is urging the US Federal Reserve to cut interest rates as his tariffs on international trade take effect. Despite the Fed’s recent decision to maintain current rates, Trump believes a rate reduction would help alleviate the economic impact of the tariffs, which some economists warn could lead to a recession due to retaliatory measures by other countries.
Federal Reserve’s Stance
The Federal Reserve has indicated the possibility of trimming rates twice this year, but Chairman Jerome Powell has emphasized the high level of economic uncertainty and rising inflation. Trump’s call for lower interest rates comes ahead of his planned implementation of “reciprocal tariffs” on April 2, which he claims will rejuvenate the US economy, despite acknowledging potential initial disruptions.
Global Trade Adjustments
As the global trade landscape adjusts to these new tariffs, Trump’s persistent appeal for rate cuts aligns with his past stance, where he has repeatedly pressed the Fed to lower rates to stimulate economic growth.
Source: Read more