Trump: Rate cuts and tariffs will go hand in hand

Odaily Odaily News reported that on Wednesday, US President Trump stated on the Truth Social social media platform that interest rates should be lowered, which would "go hand in hand" with the upcoming tariff policy, although economists expect the tariff policy to exacerbate inflation and delay rate cuts. On Monday, Trump significantly raised tariffs on steel and aluminum imports to 25%, "with no exceptions or exemptions", hoping this move would help the struggling industries in the US, but it could also trigger a trade war. However, Federal Reserve Chairman Powell told Congress on Tuesday that given the overall strength of the economy, the Fed is in no rush to cut rates again. A Reuters survey showed that the Fed is expected to wait until next quarter to cut rates again. Earlier data showed that the US consumer price increase in January was higher than expected. Since Trump's election, economists have raised their inflation forecasts, as they are concerned that Trump's policies, especially the tariff policy, could rekindle price pressures in the economy. Analyst Enda Curran said that today's CPI data may lead to a tense period between the Fed and the White House. Analyst Anstey said that just a little over half an hour before the CPI report was released, Trump posted on his Truth Social platform that "interest rates should be lowered". This does not seem to be a good timing. If the Fed cuts rates at this time, it will certainly increase the risk of persistent inflation.