{"id":5173,"date":"2025-03-21T09:01:34","date_gmt":"2025-03-21T09:01:34","guid":{"rendered":"https:\/\/firearmman.com\/?p=5173"},"modified":"2025-03-21T09:01:37","modified_gmt":"2025-03-21T09:01:37","slug":"trump-criticizes-federal-reserve-calls-for-lower-interest-rates","status":"publish","type":"post","link":"https:\/\/firearmman.com\/?p=5173","title":{"rendered":"Trump criticizes Federal Reserve, calls for lower interest rates"},"content":{"rendered":"
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President Donald Trump late Wednesday criticized the Federal Reserve, urging the central bank to reduce<\/a> interest rates, hours after it chose<\/a> to leave borrowing rates unchanged.<\/p>\n

The move marked the latest example of Trump exerting pressure<\/a> on the Federal Reserve, despite a longstanding norm of political independence at the central bank.<\/p>\n

Trump said lower rates would best prepare the economy for tariffs that are set to escalate over the coming weeks.<\/p>\n

\u201cThe Fed would be MUCH better off CUTTING RATES as U.S. Tariffs start to transition (ease!) their way into the economy,\u201d Trump said in a post on Truth Social on Wednesday, adding \u201cDo the right thing.\u201d<\/p>\n

The president did not provide further explanation but as recently as January, Trump advocated<\/a> for interest-rate cuts in response to what he described as the prospect of lower oil prices.<\/p>\n

Speaking in Washington, D.C. on Wednesday afternoon, Fed Chair Jerome Powell faulted<\/a> Trump\u2019s tariffs for a \u201cgood part\u201d of recent inflation, advocating for a wait-and-see approach as the new administration\u2019s policy changes take hold.<\/p>\n

Even as the Fed left its main policy lever unchanged, the central bank predicted weaker year-end economic growth and higher inflation than it had in a December forecast.<\/p>\n

Uncertainty clouds the economic outlook, Powell said, pointing to the Trump administration’s potentially “significant policy changes” in areas like trade, immigration and regulation.<\/p>\n

“Uncertainty around the changes and their effects on the economic outlook is high,\u201d Powell said. \u201cWe are focused on parsing the signal from the noise.\u201d<\/p>\n

If the central bank raises rates as a means of protecting against tariff-induced inflation, the Fed risks stifling borrowing and slowing the economy, experts previously told<\/a> ABC News.<\/p>\n

On the other hand, experts said, if the Fed lowers rates to stimulate the economy in the face of a potential slowdown, it threatens to boost spending and drive up inflation.<\/p>\n

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Federal Reserve Chairman Jerome Powell delivers remarks at a news conference following a Federal Open Market Committee meeting at the Federal Reserve, Mar. 19, 2025 in Washington.<\/span><\/span><\/span><\/p>\n

Kevin Dietsch\/Getty Images<\/span><\/p>\n<\/div>\n<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<\/div>\n

The rare rebuke of the central bank by Trump came weeks after his tariffs touched off a global trade war that sent stocks reeling<\/a> and triggered concern about a possible recession<\/a>.<\/p>\n

By some key measures, however, the economy remains in solid shape. A recent jobs report<\/a> showed steady hiring last month and a historically low unemployment rate. Inflation stands well below a peak attained in 2022, though price increases register nearly a percentage point higher than the Fed’s goal of 2%.<\/p>\n

In January, Trump also made a call for lower rates, days before the Fed opted to hold interest rates steady.<\/p>\n

Speaking at a press conference in Washington, D.C. after that rate announcement, Powell declined to comment about Trump’s call for lower interest rates, saying it would be “inappropriate” to respond.<\/p>\n

“The public should be confident that we’ll continue to do our work as we always have,” Powell said, adding that the Fed would continue to “use our tools to achieve our goals.”<\/p>\n

After the rate decision on Wednesday, a reporter again asked Powell whether Trump may interfere with the Fed. In a brief response, Powell affirmed his previous comments.<\/p>\n

\u201cI think I did answer that question in this very room some time ago,\u201d Powell said. \u201cAnd I have no desire to change that answer, and have nothing new for you on that today.\u201d<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

President Donald Trump late Wednesday criticized the Federal Reserve, urging the central bank to reduce interest rates, hours after it chose to leave borrowing rates unchanged. The move marked the latest example of Trump exerting pressure on the Federal Reserve, despite a longstanding norm of political independence at the central bank. Trump said lower rates […]<\/p>\n","protected":false},"author":1,"featured_media":5174,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-5173","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-us-news"],"_links":{"self":[{"href":"https:\/\/firearmman.com\/index.php?rest_route=\/wp\/v2\/posts\/5173","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/firearmman.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/firearmman.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/firearmman.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/firearmman.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5173"}],"version-history":[{"count":1,"href":"https:\/\/firearmman.com\/index.php?rest_route=\/wp\/v2\/posts\/5173\/revisions"}],"predecessor-version":[{"id":5175,"href":"https:\/\/firearmman.com\/index.php?rest_route=\/wp\/v2\/posts\/5173\/revisions\/5175"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/firearmman.com\/index.php?rest_route=\/wp\/v2\/media\/5174"}],"wp:attachment":[{"href":"https:\/\/firearmman.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/firearmman.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/firearmman.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}