Trump Says ‘Let’s Rock and Roll, America!’ in Calling for Fed To Lower Interest Rates To Coincide With Tariffs

President Donald Trump has called for the Federal Reserve, and by extension Chair Jerome Powell, to lower interest rates to go “hand in hand” with his tariff rollout, according to CNBC.

In a post made to Truth Social on Feb. 12, Trump made his desires clear concerning Powell’s recent comments on interest rates.

“Interest Rates should be lowered, something which would go hand in hand with upcoming Tariffs!!! Lets Rock and Roll, America!!!” Trump wrote.

The president’s comments could be construed as a response to Powell’s Feb. 11 remarks suggesting that the Fed is reluctant to reduce interest rates at this time, positioning itself for a more cautious, wait-and-see approach.

“With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance,” Powell said, per a separate CNBC report.

Powell Obliquely Responds to Trump’s Call for Lower Interest Rates From the Fed

Powell stood before the House Financial Services Committee following the release of Trump’s Truth Social post to speak on various subjects, including the possibility of the Fed resuming interest rate cuts.

While not directly addressing Trump’s call for the Fed to slash interest rates once more, the Fed chair assured Americans that, under his purview, stability was top of mind.

“People can be confident that we’ll continue to keep our heads down, do our work, make our decisions based on what’s happening in the economy,” Powell said.

When asked whether “statements by elected officials are not among the things that cause you to act one way or the other,” Powell responded in the affirmative.

“That’s correct,” he replied.

Powell’s stance echoed comments he had made when standing before the Senate Banking Committee the day prior.

“We do not need to be in a hurry to adjust our policy stance,” Powell testified before the committee on Feb. 11, per FOX Business. “We know that reducing policy restraint too fast or too much could hinder progress on inflation. At the same time, reducing policy restraint too slowly or too little could unduly weaken economic activity and employment.”

While Trump Calls for Lower Interest Rates, Analysts Believe Fed Cuts Are Unlikely in the Near Future

Despite the president’s push for the Fed to lower interest rates, several analysts don’t see such action in the cards — at least not in the near future.

Politico reported that onlookers were already pulling back from a positive prediction over an incoming Fed rate cut, and after the latest inflation report (one showing a higher-than-expected 0.4% increase in inflation in January), CME’s FedWatch tool projected only a 2.5% chance of a rate cut at the March 19 Fed meeting.

Further, CNBC cited economists at the Bank of America as believing that there will be no rate cut this year whatsoever, particularly following the Fed having cut the benchmark overnight borrowing rate by a full percentage point over the course of 2024.