President Donald Trump said on Friday that it would be the “perfect” time for Federal Reserve Chairman Jerome Powell to cut the interest rates while Powell said that the tariffs imposed by Trump this week will raise inflation.
Trump posted on Truth Social, “This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always ‘late,’ but he could now change his image, and quickly. Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months – A BIG WIN for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”
The post from Trump comes after announcing a number of reciprocal tariffs against different countries earlier this week. In response to Trump’s post, Powell told reporters in Virginia that the Fed is “well positioned to wait for greater clarity,” according to CNBC.
“Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem,” Powell told reporters. “We are well positioned to wait for greater clarity before considering any adjustments to our policy stance. It is