President Donald J. Trump called for the Federal Reserve to “do the right thing” and cut interest rates to boost the economy, challenging the central bank in a late Wednesday post to Truth Social.
Trump’s challenge came after comments by Federal Reserve Chair Jerome Powell who parroted Democrat talking points by claiming that his tariffs are partly to blame for inflation with the Fed announcing that it would leave interest rates unchanged due to the potential impact of his economic policies.
On April 2nd, the president’s “reciprocal tariffs” are set to go into effect against countries that have chosen to wage a trade war against the United States, with Canada being one example. Trump has referred to the date as a “liberating day” when the U.S. will begin getting back some of the wealth that his predecessors “foolishly” gave away to other countries.
“The Fed would be MUCH better off CUTTING RATES as U.S.Tariffs start to transition (ease!) their way into the economy. Do the right thing. April 2nd is Liberation Day in America!!!” Trump wrote.
(Screengrab: Truth Social)
Earlier in the day, Powell gave ammo to Trump’s critics on tariffs when he spoke at a press conference in Washington, D.C., stating that the central bank has decided that interest rates would stay the same and citing “significant policy changes” of the Trump administration.
The Federal Reserve held interest rates steady on Wednesday, with Fed Chair Jerome Powell acknowledging that President Trump’s tariffs had contributed to a “good part” of recent price increases. https://t.co/hiPFzPpc5f pic.twitter.com/UDfqUhOKc9
— ABC News (@ABC) March 19, 2025
“It’s the net effect of these policy changes that will matter for the economy and for the path of monetary policy,” Powell told reporters. “Uncertainty around the changes and their effects on the economic outlook is high.”
“I think we were getting closer and closer” to stability in prices, said the Fed chairman. “I wouldn’t say we were at that. … I do think with the arrival of the tariff inflation, further progress may be delayed.”
Powell’s statement comes as the high prices of the Biden era begin to subside, most visibly the price of eggs which have recently dropped significantly after skyrocketing due to the former president’s killing off millions of egg-laying chickens before he left office.
“Recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated,” the Fed said in a Wednesday FMOC statement. “In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.”
“April 2 is a liberating day for our country,” Trump told onboard Air Force One on Sunday. “We’re getting back to some of the wealth that very, very foolish presidents gave away because they had no clue what they were doing.”
“It’s a liberation day for our country because we’re going to be getting back a lot of the wealth that we so foolishly gave up to other countries, including friend and foe,” he added.
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