US President Donald Trump has publicly criticized the Federal Reserve for not cutting interest rates, arguing that it's necessary for the US economy. Meanwhile, Fed officials such as Raphael Bostic show a more cautious approach.
Trump's Address
US President Donald Trump once again urged the Federal Reserve to lower interest rates, expressing dissatisfaction with the decision to keep them at 4.25% to 4.50%. He argues that a rate cut is necessary as the US economy feels the impact of tariffs.
Fed's Position and Raphael Bostic
Fed officials, including Atlanta Fed President Raphael Bostic, showed a cautious stance on changing monetary policy. Bostic noted that inflation remains above the 2% target and is expected to return to it only by 2027. He emphasized the importance of avoiding premature rate cuts.
Future Prospects and Forecasts
The Fed currently anticipates only one rate cut this year, despite some analysts' expectations for multiple cuts in 2025. Bostic also warned about potential price spikes due to tariffs, which typically cause a temporary increase.
While Donald Trump continues to insist on the need for rate cuts, the Federal Reserve remains committed to its cautious approach. Raphael Bostic emphasizes the importance of measured decisions to avoid negative economic impacts.
