The Blubber

President Donald Trump on Friday urged Federal Reserve Chair Jerome Powell to lower interest rates, even as his recently announced tariff plan sparked market turmoil and stoked concerns about renewed inflation.

“This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always ‘late,’ but he could now change his image, and quickly,” Trump wrote on Truth Social. “Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months – A BIG WIN for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”

The president’s comments came as global markets tumbled following the unveiling of his sweeping tariff agenda on Wednesday, which has intensified fears of an economic slowdown.

Despite Trump’s calls, the Federal Reserve may be hesitant to lower rates due to the uncertainty surrounding inflation. The central bank has held off on additional rate cuts recently, in part because inflation progress has stalled. The newly announced tariffs could push prices higher in the short term, adding further complexity to the Fed’s decision-making.

Speaking in Arlington, Virginia, on Friday, Powell told a group of business journalists that the Fed was “well positioned to wait for greater clarity” before making adjustments such as cutting rates.

Meanwhile, market interest rates have dropped sharply this week, with the yield on the 10-year U.S. Treasury falling below 4%—a common signal of investor concern about an impending recession.

Traders in the Fed funds futures market are now pricing in at least four 0.25-point rate cuts from the central bank this year, according to the CME FedWatch tool. That’s up from the two cuts policymakers projected at their meeting last month.