Trump calls for lower interest rates to go 'hand-in-hand' with tariffs: 'Lets rock and roll, America'
Published On Feb 12, 2025, 9:05 AM
Former President Trump called for the Federal Reserve to lower interest rates, suggesting that such a move should complement upcoming tariffs. This statement follows the Fed's decision to keep interest rates steady at its recent January meeting. Trump believes that reducing interest rates is necessary alongside actions directed towards tariffs to enhance economic activity, particularly in response to falling oil prices. However, Fed Chairman Jerome Powell indicated that the central bank is cautious about rushing into rate cuts due to ongoing inflation concerns.
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Trump's call for lower interest rates could indicate a shift in monetary policy expectations which often generates speculation about the broader economy. If the market perceives a chance of upcoming rate cuts, it could boost equity markets as cheaper borrowing costs generally support business investments and consumer spending.
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