'CUT' AND DRY: Trump Tells Powell Now is the 'PERFECT' Time to Cut Interest Rates

President Trump hit TRUTH Social on Friday amid a dipping Dow to suggest now is the time for Fed Chairman Jerome Powell to cut interest rates.

Trump posted the following message to the Fed Chair:

This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always “late,” but he could now change his image, and quickly. 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!

NEW: President Trump calls on Fed Chairman Jerome Powell to "cut interest rates and stop playing politics!" pic.twitter.com/AhxCueZcyG

— KanekoaTheGreat (@KanekoaTheGreat) April 4, 2025

Powell said on Friday he expects the tariffs to raise inflation and slow economic growth.

From CNBC:

In a speech delivered before business journalists in Arlington, Va., Powell said the Fed faces a “highly uncertain outlook” because of the new reciprocal levies the president announced Wednesday.

Though he said the economy currently looks strong, he stressed the threat that tariffs pose and indicated that the Fed will be focused on keeping inflation in check.

“Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem,” Powell said in prepared remarks. “We are well positioned to wait for greater clarity before considering any adjustments to our policy stance. It is too soon to say what will be the appropriate path for monetary policy.”

“While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent,” Powell said. “Avoiding that outcome would depend on keeping longer-term inflation expectations well anchored, on the size of the effects, and on how long it takes for them to pass through fully to prices.”

More over at CNBC:

Powell sees tariffs raising inflation and says Fed will wait before further rate moves https://t.co/j71uo7rSN8

— CNBC (@CNBC) April 4, 2025

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