President Trump doubled down on pressuring the Federal Reserve to lower interest rates, arguing that the costs of eggs, groceries and gas are down so the central bank can make cuts.
“Egg prices are WAY DOWN from the Biden inspired prices if just a few weeks ago. ‘Groceries’ and Gasoline are down, also. Now, if the Fed would do the right thing and lower interest rates, that would be great!!!” the president said on Truth Social late Thursday night.
The Fed announced Wednesday that it would keep rates steady at a 4.25 percent to 4.5 percent range, even with some indications that the U.S. economy might be leaning toward a slowdown.
Trump also pressured the Fed in a Truth Social post Wednesday night, saying, “The Fed would be MUCH better off CUTTING RATES as U.S. Tariffs start to transition (ease!) their way into the economy.”
He highlighted that the administration is set to unleash a new batch of reciprocal tariffs April 2.
Federal Reserve Chair Jerome Powell cited those looming tariffs in his press conference earlier this week, arguing that they threaten to slow the economy’s growth even more, with inflation increasing back to annual 3 percent mark.
The president weighing in on decisions of the Fed, an independent agency, comes as he dismissed two Democratic members of the Federal Trade Commission (FTC), raising new questions about the future of independent agencies.
Powell’s term ends in 2026 and he said in November he wouldn’t step down earlier if Trump asked him to do so. He added at the time that it is “not permitted under the law” for the president to fire or demote him or any of the other Fed governors with leadership positions.
Trump said last summer that he would let Powell serve out his term, “especially if I thought he was doing the right thing,” but that he would not reappoint him for another term.
