Donald Trump insists on doing "perfect time" for rate cuts, as Jerome Powell warns against "greater than expected" tariff -driven inflation | Mint

US President Donald Trump on Friday called on federal reserve chairman Jerome Powell to call lower energy prices, interest rates and inflation. His remarks come at a time when US markets face a massacre after his greasy tariff announcement which he believes has benefited America and Americans. Donald Trump has constantly asked for a rate reduction of Powell, his leader of the central bank with whom he had a fallout, by hand. “It would be a perfect time for Fed chairman Jerome Powell to lower interest rates. He is always ‘late’, but he can now change his image and quickly,” Donald Trump said in a post about Truth Social, a platform owned by him. Trump apparently ordered Jerome Powell to lower interest rates, which is currently between 4.25 percent to 4.50 percent. “Energy prices are lower, interest rates are falling, inflation is lower, even eggs are 69%lower, and work is higher, all within two months – a big victory for America. Cut interest rates, Jerome, and stop playing politics,” Donald Trump wrote in the post. The remarks of the US president come days after he unveiled a series of rates on almost all countries around the world, a step that would, according to economists, lead to a global economic slowdown. The world markets, including those in the US, went into shock and threw trillions into investors’ wealth. Jerome Powell: ‘Trump tariffs significantly higher than expected’, Federal Reserve chairman Jerome Powell expressed his shock over Trump’s tariff announcement on Friday, saying the levies and its impact on the economy and inflation are ‘significantly greater than expected’. He also said that the import tax is ‘highly likely’ to lead to ‘at least a temporary increase in inflation’. However, he also made an alarm that the effects of the tariff announcement could be “more persistent”. “Our obligation is to keep anchoring inflation expectations well and to make sure that a one -time increase in the price level does not become an ongoing inflation problem,” he said. “We are well positioned to wait for greater clarity before considering any adjustments to our policy attitude.” Powell ‘not hurry’ who spoke at a conference on Friday, Powell said the Fed was not in a hurry to lower interest rates. “Our macro economies are all working hard to digest the news of this week and try to filter it in the prediction they are going to make, and policymakers do much the same,” Powell said at the conference. “However, I would say, it feels like we don’t have to be in a hurry,” he added. He said that the Fed is not yet clear about what policy it is moving, if any. “For me, it’s not clear what the appropriate way for monetary policy will be, and we’ll have to wait and see how it plays before we can,” he said. Will Jerome Powell lower interest rates? Jerome Powell’s remarks on the remaining focus on the inflation problem indicate that he will not follow Donald Trump’s proposal and that the Fed will keep his benchmark interest rate unchanged at about 4.3 percent in the coming months. This could be a disappointment for Wall Street investors, who expected at least five rate cuts this year, with the number increasing after Trump tariff announcements. Economists predict that the rates will weaken the economy, possibly threaten the rent and raise prices. In that case, the Fed is probably reduced rates to strengthen the economy, or it can keep rates unchanged – or even rise – to combat inflation. The Fed’s next meeting will be held during the first week of May.