US President Donald Trump speaks in the Oval Bureau of the White House in Washington, Washington, USA, February 11, 2025.
Kevin Lamarque Reuters
President Donald Trump changed his positions into the Federal Reserve again, indicating on Wednesday in social media that interest rates must decrease.
“Interest rates should be reduced, something that will go hand in hand with the upcoming tariffs !!! Let Rock and Roll, America !!! ” The president said in a morning post about social truth.
Comments come the day after the Fed Chairman Jerome Powell said decision -makers do not have to “hurry” Lower the rates when they observe progress in inflation. Other officials said that they also assess the potential impact of prices on prices, although Powell avoided commenting directly in this matter.
Trump's post also reflects the changing narrative from the White House when it comes to monetary policy.
Shortly after taking office, Trump demanded a reduction in interest rates “immediately”, although there is no direct authority towards the Fed. A few days later he said that the Fed made a proper decision to maintain a permanent indicator at the late January meeting.
In subsequent comments, the treasury secretary Scott Bessent said that the administration focused more on the reduction of 10-year achievement of the treasury than the short-term Fed fund.
However, the Wednesday commentary of Trump indicates the reversal of exerting pressure on the central bank to facilitate politics.
Market prices imply that the FED will remain in June or July, and then is not again limited for the rest of the year. Some economists, including at Bank of America, believe that the central bank this year will not relieve this year after reference during the night reducing the interest rate with a full percentage point in 2024.