Trump says Fed should cut rates as tariff push heats up

US President Donald Trump

President Donald Trump said the Federal Reserve should cut rates, splitting with the US central bank as officials weigh the economic cost of his tariff push.

“The Fed would be MUCH better off CUTTING RATES as U.S.Tariffs start to transition (ease!) their way into the economy,” Trump said in a post on Truth Social. “Do the right thing. April 2nd is Liberation Day in America!!!”

Trump’s post Wednesday evening comes as his administration prepares to unveil a fresh wave of tariffs, which Federal Reserve Chair Jerome Powell signaled was hanging over forecasts.

Federal Reserve officials held their benchmark interest rate steady for a second straight meeting, as expected. Powell downplayed simmering concerns about a slowdown but acknowledged tariff uncertainty was a factor and already contributing to goods inflation, but may prove transitory.

Read more: Powell Downplays Growing Risks, Sees Tariff Impact as Transitory

Trump’s administration is preparing to announce a fresh wave of tariffs on April 2, though the exact scope isn’t clear. Trump has promised so-called “reciprocal” tariffs on at least some nations, though his administration has not specified which ones or at what rate.

Trump has sent repeated mixed messages on the Fed — at times calling for cuts and otherwise declining to intervene.

Earlier Wednesday, Trump’s national economic adviser, Kevin Hassett, stressed to reporters that the president and White House officials “very much respect the independence of the Fed.”

Even so, he made clear to reporters he differed with the Fed’s growth forecast, saying he anticipated a 2.5% growth rate. Fed officials are now predicting a 1.7% expansion.