President Trump once again pressed the Federal Reserve to cut the interbank lending rate as the administration's fundamental tariffs are set to resume next month.
“The Fed would prefer a better cut rate as US tariffs begin to begin (easy!) into the economy. Do the right thing,” Trump said. I wrote it on a Wednesday night In a post about the True Society. “April 2nd is America's liberation day!!”
The central bank has announced that interest rates will remain stable in the 4.25% to 4.5% range, even as it indicates that the US economy may be leaning towards a slowdown.
Federal Reserve Chairman Jerome Powell said at a press conference Wednesday that Trump's looming tariffs threatened to slow economic growth further, threatening inflation to 3% per year.
Powell said “we're approaching” to stabilize prices, but “I'm not saying we're in it.”
“I think once tariff inflation arrives, further progress may be delayed,” he added.
Wednesday's decision marks the second time the Fed has suspended interest rate cuts since Trump took office. Last year, the central bank cut its fees three times to combat easing prices and weakening employment data.
The Trump administration is set to unleash a new batch of mutual tariffs on April 2nd. Additional taxes will be broader in scope, but the president said sector-specific tariffs will be included in steel and aluminum used in automobile production.
“It's a day of liberation for our country, because we will reclaim many wealth that we have given up so stupidly to other countries, including our friends and enemies,” he told reporters on Sunday.
Mutual duties not only level the taxes of import countries on imports and imports on U.S. goods, but could encompass much more, according to Treasury Secretary Scott Bescent.
Bessent said Tuesday that the administration will take into account industrial subsidies, working conditions, currency manipulation and other policies when determining new figures for additional taxes.
“We went to them and said, “Look, where you think there's a tariff level, non-secret barriers, currency manipulation, unfair funds, labor control, and if you stop this, you're not going to put up a tariff wall,” Bescent told Fox Business's Maria Bartiromo.
If the country's policies remain unchanged, “We will set up tariff barriers to protect the economy, protect workers and protect the industry,” he said.
