Former U.S. President Donald Trump is asking Federal Reserve Chairman Jerome Powell to cut interest rates. He believes now is the perfect time to make the move and says Powell should stop playing politics.
Trump made the statement on his social media platform, Truth. He criticized Powell for usually being late in making decisions but said this is a chance for him to change that reputation.
Trump wrote, “This is a perfect time for Fed Chairman Jerome Powell to cut interest rates. Energy prices are down, interest rates are down, inflation is down, even egg prices are down 69%, and jobs are up – all in just two months. This is a big win for America. Cut interest rates, Jerome, and stop playing politics.”
However, Powell has a different view. On Friday, he said Trump’s new tariffs could cause inflation to rise and slow down the U.S. economy. He explained that the Fed is working to make sure any price increases are temporary.
Powell said the impact of the tariffs on the economy and inflation is bigger than expected. He warned that the higher import taxes are likely to cause inflation, and the effects might not go away quickly.
