Trump is seeking low interest rates when Powell heads to the Hill
(Bloomberg) – President Donald Trump is calling for lower interest rates and increasing pressure on the Federal Reserve to implement a second-term economic agenda on expanding tariffs and tax credits.
Most of them read from Bloomberg
“We need to lower interest rates, which is something we’ll go hand in hand with the upcoming tariffs,” Trump said Wednesday in a social media post.
The president’s comments came ahead of testimony from Federal Reserve Chairman Jerome Powell before the House Financial Services Committee later Wednesday. He posted them within an hour when new data drew a 0.4% rise in US inflation in January, 0.4% higher than forecast, dimbling the possibility of immediate rate reductions.
In the subsequent post, Trump sought to condemn his predecessor, former President Joe Biden, for the persistent inflation.
The central bank chief told the senator on Tuesday that there was no need to rush to adjust interest rates. This further signaled that the Fed would become a patient before lowering borrowing costs again. The Federal Open Market Committee lowered the fees at each of its final three meetings in 2024, but policymakers stabilized the bank’s key policy rates in January.
Powell refuses to repeatedly comment on how the Fed will respond to changes in the president’s policy, and how a mix of proposals, with what is actually being enacted, will affect the economy. It emphasized that it depends on interacting with or relying on.
David Kelly, chief global strategist at JPMorgan Asset Management Inc., predicted that Powell would avoid responding to Trump’s remarks during his testimony, saying the Fed should not hurry to cut fees, and that he would be in a hurry to cut fees. Tax packages negotiated in large, large parliamentary congresses with undocumented immigration citing uncertainty.
“The Fed has to think about all of that, so when they’re making immigration, tariffs and taxes this year, they can see that, we need to make further adjustments. Are there any? Bloomberg TV.
Trump’s comments show a change from what he said earlier this month when the Federal Reserve made the right decision and said, “It’s the right thing to keep the fees at this point.” .
Although the president has traditionally declined to comment on bank policymaking, Trump has regularly placed emphasis on central bank interest rate handling, and frequently jabs Powell during his first term at the White House. I’m doing it.