President Donald Trump has escalated his pressure on the Federal Reserve to implement interest rate cuts, asserting that recent declines in food and gas prices should prompt the central bank to act. In a recent post on his social media platform, Trump stated, "Egg prices are WAY DOWN from the Biden inspired prices if just a few weeks ago. ‘Groceries’ and Gasoline are down, also. Now, if the Fed would do the right thing and lower interest rates, that would be great!!!"

On March 19, following a two-day policy meeting, the Fed announced that it would maintain its benchmark interest rate in the range of 4.25 percent to 4.5 percent, despite indications that the U.S. economy might be tilting towards a slowdown. Trump urged the central bank to cut rates, particularly in light of the upcoming implementation of new reciprocal tariffs on April 2. He expressed that, "The Fed would be MUCH better off CUTTING RATES as U.S. Tariffs start to transition (ease!) their way into the economy."

In his remarks, Fed Chair Jerome Powell acknowledged that the looming tariffs could further hinder economic growth, potentially leading inflation to rise back to around 3 percent. Powell insisted that the central bank must consider the overall economic factors and maintain its cautious approach given the high uncertainty surrounding Trump's tariff policies.

This recent push from Trump comes as he questions the autonomy of independent agencies, following his dismissal of two Democratic members of the Federal Trade Commission (FTC). Despite Trump's earlier assertion that he would not interfere with Powell's term, the ongoing pressure indicates a significant tension between the presidency and the Federal Reserve.

For more insights on this story, check The Hill.