Trump presses Federal Reserve to cut rates

(The Hill) -- President Donald Trump again pressed the Federal Reserve to cut interbank lending rates as the administration's sweeping tariffs are set to resume next month.

"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," Trump wrote Tuesday night in a post on Truth Social. "April 2nd is Liberation Day in America!!!"

The central bank announced earlier Wednesday that it would keep rates steady at a 4.25 to 4.5 percent range even with some indications that the U.S. economy might be leaning toward a slowdown.

Federal Reserve Chair Jerome Powell said during a press conference Wednesday that Trump's looming tariffs threaten to slow the economy's growth even more, with inflation increasing back to annual 3-percent increase.

Powell said while "we were getting close and closer" to stabilizing prices, "I wouldn't say we were at that."

"I do think with the arrival of the tariff inflation, further progress may be delayed," he added.

Trump presses Federal Reserve to cut rates

Wednesday's decision represented the second time the Fed has paused rate cuts since Trump returned to office. Last year, the central bank cut rates three times to combat the easing of prices and weakening employment data.

The Trump administration is set to unleash a new batch of reciprocal tariffs on April 2. The additional taxes will be broad in scope, although the president said sector-specific tariffs will be included on steel and aluminum used for automobile production.

"It's a liberation day for our country because we're going to be getting back a lot of the wealth that we so foolishly gave up to other countries, including friend and foe," he told reporters Sunday.

Reciprocal tariffs could encompass much more beyond equalizing the taxes on imports other nations levy on U.S. goods, according to Treasury Secretary Scott Bessent.

Bessent said Tuesday that the administration will take into account industrial subsidies, labor conditions, currency manipulation and other policies when determining the new figures for additional taxes.

"We are going to go to them and say, 'Look, here is where we think the tariff levels are, nontariff barriers, currency manipulation, unfair funding, labor suppression, and if you will stop this, we will not put up the tariff wall,'" Bessent told Fox Business's Maria Bartiromo.

If the nation's policies remain unchanged, "then we will put up the tariff wall to protect our economy, protect our workers, and protect our industries," he said.