Trump feels with early Administration wins that lowering rates will help the economy further.
Interest rates being reduced could help rebuild the economy. Trump is signaling some early wins for a strong recovery from recent high inflation experienced during the Biden Administration. To further these wins, Trump would like to see the Federal Reserve drop interest rates in early May.
“He is always ‘late,’ but he could now change his image, and quickly,” the president said of Mr. Powell in the post. “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 president wrote in capital letters in his post on Truth Social.
The new Administration’s tariff plans in the short-term are not yet known, and is causing some economic uncertainty in the markets. Trump’s unique approach for trying to level the playing field with international trade is aggressive. Wednesday the Federal Reserve had this to say, “Recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty around the economic outlook has increased. The Committee is attentive to the risks to both sides of its dual mandate.”
The next Federal Open Market Committee (FOMC) meeting to discuss economic growth and interest rates will take place May 6-7.