Donald Trump urges Fed to lower interest rates amid tariff turmoil

President Trump called on Federal Reserve Chairman Jerome Powell to cut interest rates as the new tariffs shake the stock market and spark fear of inflation.

In a Truth Social post Friday, Mr. Trump called it a “perfect time” to bring down interest rates.

“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.

Mr. Powell, speaking to journalists Friday at the Society for Advancing Business Editing and Writing conference in Arlington, Virginia, said the economic impact of the tariffs “will include higher inflation and slower growth.”

“The new administration is in the process of implementing substantial policy changes in four distinct areas: trade, immigration, fiscal policy and regulation,” he said. “Our monetary policy stance is well-positioned to deal with the risks and uncertainties we face as we gain a better understanding of the policy changes and their likely effects on the economy.”

Mr. Powell said the Fed will “wait for greater clarity before considering any adjustments to our policy stance,” like rate cuts.

He also said the tariffs announced by Mr. Trump on Wednesday are “significantly larger than expected.”

Mr. Trump on Wednesday implemented a baseline 10% tariff on all imports, plus reciprocal tariffs on “worst-offender” countries, imposing levies half the rate the specific nation is charging the U.S.

China’s tariff rate of 67% would now see a 34% rate from the U.S. on top of the previous 20%. The European Union’s 39% rate will see a 20% rate from the U.S. And a 25% tariff will be placed on cars made outside America.

The baseline tariffs will go into effect over the weekend, with the reciprocal tariffs landing on April 9. The auto tariffs went into effect at midnight Thursday.

Last month, the Fed kept interest rates the same, with central bank officials weighing the impact of Mr. Trump’s tariffs.

Some countries have already moved to add to their tariffs. China piled on a 34% levy on goods it imports from the U.S.

“The U.S. practice is inconsistent with international trade rules, seriously undermines China’s legitimate rights and interests, and is a typical unilateral bullying practice that not only undermines the interests of the United States itself, but also endangers global economic development and the stability of the production and supply chain,” the finance ministry in Beijing said.

Wall Street is awash in a stock crash, suffering its worst day Thursday since 2020. Still, Mr. Trump has maintained that the tariffs are necessary to hit back at the “unfair” treatment from other countries.

He said tariffs will bring industries back to the U.S. and will provide more jobs for Americans.

In an all-caps Truth Social post Friday, Mr. Trump said, “To the many investors coming into the United States and investing massive amounts of money, my policies will never change. This is a great time to get rich, richer than ever before!!!”

In another all-caps post, he wrote, “Great job numbers, far better than expected. It’s already working. Hang tough, we can’t lose.”