President Trump is urging the Federal Reserve to cut interest rates earlier in the year to “ease” the economy into his system of tariffs on foreign goods.
In an overnight Truth Social post, Mr. Trump pressed the central bank on its decisions.
“The Fed would be MUCH better off CUTTING RATES as U.S. Tariffs start to transition (ease!) their way into the economy. Do the right thing. April 2nd is Liberation Day in America!!!” Mr. Trump posted late Wednesday.
The president is pushing for rate relief as Wall Street reacts warily to his tariff plan
A combination of tariffs and lower rates could result in more inflation, however.
Fed Chair Jerome Powell said Tuesday that the Open Market Committee voted to keep rates steady but signaled they are on track for cuts later this year, perhaps by June.
SEE ALSO: Deals, factory moves, task forces: Globe braces for Trump’s ‘dead serious’ tariff plan
Mr. Powell said tariffs will likely cause short-term inflation before receding, though cautioned there are a lot of unknowns.
“We’re going to have to see how things actually work out,” he said.
The comments alluded to Mr. Trump’s plan to evaluate other countries’ tariffs and trade barriers on U.S. goods and assign each nation a tariff number on their goods by April 2.
Some countries might be able to negotiate down the tariffs but Mr. Trump insists he is moving forward with the levies after the calculations.
Previously, Mr. Trump imposed an additional 20% tariff on Chinese goods and 25% tariff on steel and aluminum imports.
The president hasn’t pressed the Fed on its actions very much this year.
Mr. Trump was far more vocal about the Fed during his first term, scolding the central bank in harsh terms for raising rates.
