US President Trump: ’Interest rates should be lowered’

Published 02/12/2025, 09:42 PM
© Reuters

Investing.com -- Former President Donald Trump called for lower interest rates in a Truth Social post on Wednesday, signaling a shift in his stance on Federal Reserve policy.

“Interest Rates should be lowered, something which would go hand in hand with upcoming Tariffs!!! Lets Rock and Roll, America!!!” Trump wrote.

His comments came a day after Federal Reserve Chair Jerome Powell indicated that policymakers are in no rush to cut rates, citing the need to monitor inflation. 

In his prepared testimony Tuesday, Powell reiterated that the Federal Reserve does “not need to be in a hurry to adjust our policy stance.”

Other Fed officials have also expressed caution, particularly regarding the potential impact of tariffs on prices.

Trump’s latest statement marks a return to his earlier pressure on the Fed. Shortly after taking office, he demanded immediate rate cuts but later supported the central bank’s decision to keep rates steady in January. 

Treasury Secretary Scott Bessent has since emphasized a focus on lowering long-term bond yields rather than short-term rates.

Market expectations currently suggest the Fed will hold rates steady until mid-year, with some analysts predicting no further cuts in 2025.

 

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