Trump pressures Fed for interest rate cuts amid tariff concerns

President Donald Trump has intensified his calls for the Federal Reserve to lower interest rates, arguing that recent declines in the prices of eggs, groceries, and gas warrant such a move. This pressure comes shortly after the Fed decided to maintain its interest rates at a range of 4.25% to 4.5%, amid concerns over the economic impact of upcoming tariffs set to be implemented on April 2. Trump stated on Truth Social that the Fed would be better off cutting rates as tariffs begin to affect the economy, urging them to 'do the right thing.' In response, Fed Chair Jerome Powell highlighted the uncertainty surrounding economic growth and inflation, attributing some inflationary pressures to Trump's tariffs. Powell emphasized a cautious approach, indicating that while tariffs may raise short-term inflation, their effects could stabilize over time. Economists warn that the proposed tariffs could ultimately raise consumer prices and slow economic activity.