Following the Federal Reserve’s decision on Wednesday to keep interest rates unchanged, U.S. President Donald Trump called for aggressive rate cuts, arguing that his tariff policies require monetary easing.
Trump took to social media to urge the Fed to “do the right thing” by slashing rates, stating that U.S. tariffs were beginning to transition into the economy. He also declared April 2nd as “Liberation Day in America,” referencing the start of his controversial reciprocal tariff rates, which have unsettled global markets. The Fed maintained its benchmark rate within the 4.25%-4.50% range, as widely anticipated.
Despite warnings from economists about potential recession risks due to Trump’s tariffs, Fed Chair Jerome Powell has signaled no urgency in altering monetary policy. Meanwhile, Trump’s economic adviser Kevin Hassett acknowledged the Fed’s independence but suggested the president’s views should still be considered.
