US President Donald Trump has called on the Federal Reserve to cut interest rates, diverging from the central bank’s current stance as officials assess the economic impact of his tariff policies.
“The Fed would be MUCH better off CUTTING RATES as US Tariffs start to transition (ease!) their way into the economy,” Trump wrote on Truth Social. “Do the right thing. April 2nd is Liberation Day in America!!!”
His remarks come as the Federal Open Market Committee (FOMC) on Wednesday (March 19) decided to keep its benchmark federal funds rate unchanged for the second consecutive meeting. The rate remains in the target range of 4.25%-4.5%, reflecting policymakers’ cautious approach amid inflationary pressures and global economic uncertainties.
The debate over interest rates and tariffs is expected to remain a key issue in the lead-up to the 2024 U.S. presidential election, with Trump positioning himself as a pro-growth advocate while the Fed maintains its focus on economic stability.