Trump Pressures Fed for Rate Cuts Amid Tariffs

President Donald Trump has urged the Federal Reserve to lower interest rates, arguing that his impending tariffs will ease the economy, despite Federal Reserve Chair Jerome Powell's warnings that these tariffs could increase inflation. Trump's call for rate cuts comes as the Fed decided to keep rates steady, citing economic uncertainty due to the tariffs. Powell highlighted that the tariffs could delay inflation relief and complicate the Fed's ability to manage economic growth and inflation effectively. The Fed plans for two rate cuts later in the year, yet it revised its growth forecast downwards, projecting higher inflation at 2.7% for 2025. Trump's tariffs, set to take effect on April 2, are intended as 'reciprocal' measures against perceived unfair trade practices. This tension between the administration's trade policies and the central bank's caution reflects broader economic uncertainty and potential challenges in monetary policy management.