President Donald Trump on Friday called on Federal Reserve Chairman Jerome Powell to cut interest rates.
“This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates,” Trump said in a Truth Social post. “He is always ‘late,’ but he could now change his image, and quickly. 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!”
Powell said at a press conference in March, when the Fed held rates steady for its second straight meeting, that the central bank isn’t in a hurry to cut interest rates and will look to assess the impact of the Trump administration’s tariffs on inflation.
FEDERAL RESERVE LEAVES KEY INTEREST RATE UNCHANGED AMID UNCERTAINTY OVER ECONOMY, INFLATION
The Federal Open Market Committee (FOMC), which guides the central bank’s monetary policy moves, noted in its March 19 announcement that “[u]ncertainty around the economic outlook has increased” and added it is focused on risks to both sides of its dual mandate to promote maximum employment and keep inflation at 2% over the long-run.
In addition to announcing its decision on interest rates, the FOMC released a summary of economic projections that showed central bank policymakers are forecasting two 25-basis-point interest rate cuts this year, followed by two cuts of that size in 2026 and one in 2027.
INFLATION GAUGE FAVORED BY FED SHOWED CORE PRICES TICKED HIGHER IN FEBRUARY
Policymakers projected slower economic growth and higher unemployment in 2025 than in their last projections released in December.
They see real gross domestic product (GDP) growing by 1.7% as of the end of 2025, down from a 2.1% estimate, while the unemployment rate was projected to be 4.4% in December — up from 4.3% in the last projections.
The market’s expectation is that the Fed will leave rates unchanged for a third straight time when it meets in early May. The benchmark federal funds rate is currently at a range of 4.25% to 4.5%.
Trump’s post comes ahead of Powell’s speech on Friday at the Society for Advancing Business Editing and Writing conference.
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