Overview

• Donald Trump publicly urged Federal Reserve Chair Jerome Powell to cut interest rates, citing lower inflation, falling energy prices, and strong employment as justification.
• Trump's call for monetary easing comes just days before sweeping tariffs targeting major trading partners, including China and the EU, are set to take effect on April 9.
• Federal Reserve Chair Jerome Powell warned the tariffs could lead to higher inflation and slower economic growth, reinforcing the Fed's cautious approach to rate adjustments.
• Prediction markets show skepticism about immediate rate cuts, with 72% of participants expecting the Fed to hold rates steady at its May meeting.
• Powell emphasized the importance of waiting for greater clarity on the economic impact of the tariffs before making policy changes, stating the Fed is in no rush to act.