Trump wants lower interest rates to inflation from their own tariff policy

• President Donald Trump wants to reduce interest rates of the federal reserve as the expected economic slowdown and increasing inflation from tariffs. However, the widespread uncertainty complicates that it is just to put an end to the reduction of the nutritional patterns of current retention.

President Donald Trump and Federal Reserve Chair Jerome Powell bets.

Trump on Thursday Called in the Fedand Powell to lower the interest rates specifically. There was only one day before Powell The Fed’s appearance repeated It was to say that the relative force of the economy was not in a hurry.

“Currently, we have been placed well to expect more clarity before taking into account any adjustments in our policy position,” said Powell on Wednesday.

Powell’s cautious approach hurts the president. In post on early social media on Thursday morning, Trump called Powell’s assessment of “confusion” and accused him of “very late and wrong.”

Trump, his tariff policy wants to reduce less interest rates to reduce the inevitable economic slowdowns as the consumption costs and stall global trading. Powell, this time, She does not want Cut prices in a very short time for inflation to return from the fear of fear. Since Powell is also careless, it is careful not to flick it in an unchanged economic area, because Trump’s tariff policy is so unparalleled because the results are unexpected.

The issue of what will be done with interest comes in an extremely unique economic background. The Fed has made significant progress in inflation since June 2022. This has achieved already increase unemployment rate. Inflation was in March 2.4%.

As the prices are stabilized and the labor market remains strong, the economy (and markets) made noise with the sudden shock of Trump’s tariff policy. Unlike any modern trade policy, there were no tariffs, but at the same time they were regularly changed on the same day.

All of which investors are made for an uncertainty level where it is difficult for the stomach. Markets were immersed, inflation expectations increased and were founded for both companies and consumers. None of this is good for an economy that has previously grown in a beautiful way.

White House and Fed

Now Trump wants to reduce the prices to cancel these effects on Powell.

“Trump believes that it will likely help lower prices to the economy and any negative impact on the ongoing trade war,” he said.

In fact, Trump, due to the tariffs, the expected economic water, the expected economic water asked the ratios. Tuesday gossip The Fed’s forecast for the US economy saw “slow growth” ahead. Some Wall Street Banks, like Morgan Stanleyalso cut off They evaluate US GDPs.

However, Trump’s actions did little to reduce the degree of warranty. “The actions of the White House have made the fed decrease,” he said.

The majority of the expected effects of the tariffs would probably cause higher inflation that usually requires increaseIt is not cut. Tariffs will increase by any component or product prices that they receive from a foreign supplier. Sellers will go to consumers who see higher label prices. If inflation was drawn, Fed, Tump would not want to remove the ratios against what they want.

Fed, in September 2024, began the ratio of cutting with a jumbo cut 50 key points. Then cut twice at the end of last year. These cuts increased the target speed of federal funds by 5.25% and 5.5% to 4.25% to 4.25% to 4.25%. In 2025, the Fed had to cut the rates. Fed was already in one nasty pattern Because the economic landscape is less clear, only about the cutting cut.

“What happened in the last few weeks has seen a very biased bias,” said Jose Torre, the chief economist of interactive brokers. “Thus, it definitely strengthened the work of the case.”

When asked why the Fed begins, Torres was unequivocal: “Very simple,” Torres said. “They started very fast.”

After this interest rate has been reduced, inflation began to intervene. In September 2024, the PCE index, which is preferred inflation in the Fed, was 2.8% to February 2025. Wall Street open-eyed In the second half of the year, two to three percent decreases. The risk of cutting prices very soon, taking into account the already ongoing tariffs, the prices with a practical confidence are referring to retrieve prices.

“The danger of reduction of prices is that inflation is retreated, and the markets lose confidence that the Fed has truly go towards the progress of low inflation,” Bianchi said.

It is an exact balance of balancing to clarify prices. Go very early and inflation flies, go late and you can come to the economy screeching. Being a delay, to provide enough incentives to an economy, then do not descend in the decline. According to Torres, more than an alternative from the recession can be a more pleasant problem.

“A critical component here is better than the problem of inflation in the executive power,” he said. “Thus, these policy headlines can cause employment weakness. It is worse that Americans only have lost their jobs, and they can’t find a job, and then the Americans complained about the rise of these prices.”

This story was first displayed Fortune.com

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