President Donald Trump has consistently pushed for lower interest rates, criticizing the Federal Reserve publicly. However, his unpredictable trade policies have complicated the Fed’s ability to act on this request. One factor is that tariff concerns have increased inflation expectations, although current data shows inflation cooling in March. Additionally, the economy remains resilient, as seen in the strong April jobs report. Cutting rates in a robust economy could lead to inflation, contradicting the Fed’s mandate. While economic growth may slow eventually due to tariff uncertainties, the data so far does not support rate cuts. The Fed acknowledges its reluctance to act due to uncertainty about the future impact of tariffs. \n— new from Business Insider
