U.S. President Donald Trump on Wednesday called on the Federal Reserve to lower interest rates, arguing that the economic effects of his trade tariffs have already been priced into the economy. He also reiterated plans to introduce additional tariffs in early April.

Trump’s comments came just hours after the Fed held rates steady and declined to adjust expectations regarding rate cuts this year.

Key points from Trump’s statement:

• Rate Cut Demand:
  “The Fed would be MUCH better off CUTTING RATES, as U.S. tariffs are gradually (and softly!) working their way into the economy. Do the right thing,” Trump posted on Truth.Social.
• Tariff Announcement Date:
  Trump added that April 2—the planned date for announcing increased trade tariffs—would be a “liberation day” for the country.

Trump has consistently pushed the Fed for further rate reductions, suggesting lower rates would help support his agenda of stronger U.S. economic growth.

However, the Fed remains cautious about committing to further easing amid ongoing inflation pressures. On Wednesday, the central bank raised its inflation forecast for 2025, while simultaneously lowering its growth outlook.

Fed officials, including Chairman Jerome Powell, expressed uncertainty about the impact of Trump’s trade policy on the economy. Trump’s tariffs primarily affect U.S. importers, who may pass increased costs onto consumers, potentially driving inflation higher.

The President plans to outline retaliatory tariffs against major U.S. trading partners on April 2. In the two months since his inauguration, Trump has imposed additional tariffs on China but has wavered on implementing similar tariffs against Canada and Mexico due to their close economic ties with the U.S.

Trump’s latest comments on the Fed have also reignited concerns about the central bank’s independence, particularly following his dismissal earlier this week of two Democratic commissioners from the Federal Trade Commission.