Donald Trump demanded the Federal Reserve 'do the right thing' and cut interest rates after Chair Jerome Powell said they were going to hold steady.
The president believes lower rates will help ease the transition to his tariffs against Canada and Mexico. Retaliatory tariffs are coming from the United States on April 2.
Trump criticized Powell and the Federal Reserve in a post to Truth Social on Wednesday night.
'The Fed would be MUCH better off CUTTING RATES as U.S. Tariffs start to transition (ease!) their way into the economy. Do the right thing. April 2nd is Liberation Day in America!!!'
On April 2, Trump will implement 'retaliatory tariffs' to offset the import taxes and non-tariff barriers of all trading partner countries.
Lower rates make it cheaper for businesses to borrow money but crucially it also cuts borrowing costs for ordinary Americans, who then have more to spend on goods and services.
Trump believes that this combined with his tariff plans will make the American economy soar to new heights.
Powell did say on Wednesday that they planned to cut rates twice later this year but not in time for Trump's proposed 'Liberation Day.'
Source: Daily Mail