President Donald J. Trump is pushing the Federal Reserve to begin a new cycle of lowering interest rates as reciprocal tariffs begin to be imposed on foreign imports starting April 2. While presidents in the past have generally refrained from publicly commenting on the central bank’s monetary policies, former President Joe Biden broke that tradition in 2024 when he pressured the Federal Reserve to slash rates before the end of the year—with an eventual rate cut occurring last September.
“The Fed would be MUCH better off CUTTING RATES as U.S. Tariffs start to transition (ease!) their way into the economy,” President Trump wrote in a post on Truth Social late Wednesday night. “Do the right thing. April 2nd is Liberation Day in America!!!”
Earlier on Wednesday, the U.S. central bank’s Federal Open Market Committee (FOMC) announced it would hold interest rates at their current levels, declining to enter into a rate cut cycle. The resilient jobs market under President Trump has kept the Federal Reserve wary of reducing interest rates, fearing that increasing liquidity could accelerate inflation. However, The National Pulse reported earlier this month that critical economic indications, including the Producer Price Index (PPI), indicate that the inflation generated by former President Joe Biden’s reckless spending is subsiding under Trump.
Following the FOMC interest rate announcement, Federal Reserve Chairman Jerome Powell signaled that the central bank remains committed to two rate cuts for 2025. However, little was offered in terms of timing the reductions.
While critics of President Trump’s tariff policies contend the trade measures will be inflationary, Chairman Powell indicated he remains unconvinced, stating that any effect on prices is likely to be “transitory” in nature with no real long-term impact on consumer costs.