Trump says interest rates should be ‘lowered’ to go ‘hand-in-hand’ with his tariffs

President Donald Trump again switched positions on the Federal Reserve, indicating in a social media post Wednesday that interest rates need to come down.

“Interest Rates should be lowered, something which would go hand in hand with upcoming Tariffs!!! Lets Rock and Roll, America!!!” the president said in a morning post on Truth Social.

The comments come a day after Fed Chair Jerome Powell said policymakers don’t need to be “in a hurry” to lower rates as they watch progress in inflation. Other officials have said they also are evaluating the potential impacts that tariffs will have on prices, though Powell has avoided commenting directly on the issue.

Trump’s post also reflects a shifting narrative from the White House when it comes to monetary policy.

Shortly after taking office, Trump demanded that interest rates be lowered “immediately,” though he has no direct authority over the Fed. Days later, he said the Fed made the correct decision in holding rates steady at its late-January meeting.

In subsequent remarks, Treasury Secretary Scott Bessent said the administration was more focused on lowering the 10-year Treasury yield than the short-term fed funds rate.

However, the Wednesday comment from Trump indicate a reversion to putting pressure on the central bank to ease policy.

Market pricing implies the Fed will stay on hold until June or July and then not cut again for the rest of the year. Some economists, including those at Bank of America, think the central bank won’t ease at all this year after taking the benchmark overnight borrowing rate down a full percentage point in 2024.