President Donald Trump once again expressed his strong disapproval of the US Federal Reserve’s decision-making on Wednesday, calling on the central bank to lower interest rates in order to partially counteract the effects of his tariffs.
“Do the right thing,” Trump demanded in a Wednesday night post on his Truth Social site, hours after the Fed decided to hold rates steady, while reducing its growth forecast and hiking its inflation outlook.
The Federal Reserve has pencilled in two rate cuts this year, but chairman Jerome Powell noted that “uncertainty today is unusually elevated” and that inflation is ticking up.
Many economists have warned that the tariffs — which are being met with trade retaliation by some countries — threaten to possibly tip the US economy and others into recession.
Trump has acknowledged that America is on the verge of a “golden age” but that the economy would experience “a little disturbance” if his proposed taxes take effect.
He reiterated in his statement on Wednesday that the US economy would experience “liberation day” on April 2, when he intends to implement “reciprocal tariffs” intended to reset international commerce.
However, he also wants interest rates in the US to decline.
“The Fed would be MUCH better off CUTTING RATES as US Tariffs start to transition (ease!) their way into the economy,” he posted.
During his first term, Trump repeatedly expressed disagreement with the Fed’s rate decisions, urging them to be lowered to boost the economy.
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