Trump urges Federal Reserve to change course and cut interest rates
Following Fed decision to keep rates steady, US president links lower rates to his controversial tariffs 'easing' their way into US economy
ISTANBUL
Following the Fed Reserve's Wednesday decision to keep interest rates steady, US President Donald Trump urged it to take an axe to rates instead.
"The Fed would be MUCH better off CUTTING RATES as U.S.Tariffs start to transition (ease!) their way into the economy," Trump said on social media, adding: "Do the right thing."
On the date for the controversial new reciprocal tariff rates, which have shaken international economies, he said: "April 2nd is Liberation Day in America!!!"
The Fed kept its federal funds rate unchanged in the 4.25%-4.50% range, as widely expected by the market.
Earlier this month, Fed Chair Jerome Powell said the Fed is in no hurry to adjust its policy stance as the Trump administration's trade, immigration, fiscal, and regulation policies take shape.
Last month, Kevin Hassett, Trump's chief economic adviser, said Powell is an independent figure and the Fed's autonomy is respected but added: "The president's opinion can also be heard, as he is the president of the US."
Economists have voiced fears of a recession over Trump’s tariffs, which have faced widespread criticism, from financial professionals, businesspeople, and workers across a host of sectors.
