US President Donald Trump has increased pressure on the Federal Reserve, demanding interest rate cuts, claiming falling food and energy prices justify this move.
Trump's Pressure on the Fed
Trump has long expressed dissatisfaction with the Fed, but tensions have heightened after they left the rates at 4.25% - 4.5%. The President has voiced his demands publicly and through social channels to lower rates for economic stimulation.
Powell and Fed's Reaction
Despite Trump's pressure, Jerome Powell urges caution, highlighting inflationary risks from Trump's tariff measures. Fed forecasts do not anticipate further inflation decline this year.
Economic Implications
Trump will impose new tariffs on April 2, calling it 'Liberation Day'. Economists warn about possible negative impacts on economic stability. Speculations about Powell's potential dismissal and market effects continue.
The conflict between Trump and the Fed threatens financial markets and may lead to legal disputes. The President's decision can have lasting effects on the US economy.
