President Donald Trump on Friday called for Federal Reserve Chairman Jerome Powell to lower interest rates, contending it is the perfect time to do so.
Trump took to Truth Social to encourage Powell to slash rates following the release of Friday’s jobs report, which smashed expectations.
“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 wrote.
“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!” he added.
Trump’s call for lowering interest rates comes just days after he announced the sweeping worldwide tariffs that are set to take effect after midnight on April 9, which include reciprocal tariffs on specific countries and baseline tariffs on others.
Some of the critical reciprocal tariffs include an additional 34 percent tariff on China, a 20 percent tariff on the European Union, a 46 percent tariff on Vietnam, a 26 percent tariff on India, and a 49 percent tariff on Cambodia.
Powell predicted tariffs would lead to inflation and slowed growth while speaking at the Society for Advancing Business Editing and Writing’s conference in Virginia on Friday.
“While uncertainty remains elevated, it is now becoming clear that tariff increases will be significantly larger than expected, and the same is likely to be true of the economic effects, which will include higher inflation and slower growth,” he said.
“The size and duration of these effects remains uncertain,” Powell added.
He also said that the Fed would wait for clarity before changes to “monetary policy.”
“We’re well positioned to wait for greater clarity before considering any adjustments to our policy stance. It is too soon to say what will be the appropriate path for monetary policy,” he stated.
