Trump Calls for Immediate Interest Rate Cuts

(Reuters) – U.S. President Donald Trump on Thursday demanded immediate interest rate reductions, urging other countries to follow suit. This marked his first significant criticism of Federal Reserve monetary policy since his inauguration three days prior.

“With oil prices going down, I’ll demand that interest rates drop immediately, and likewise they should be dropping all over the world,” Trump stated at the World Economic Forum in Davos, Switzerland.

His comments were made just five days ahead of the Fed’s first policy meeting during his administration, scheduled for January 28 and 29, where no changes in rates are widely expected.

Several Fed officials, including Chair Jerome Powell, have emphasized caution against further rate reductions due to persistent inflation. Previous forecasts had already considered potential Trump policies that might lead to higher inflation and slightly stronger growth.

The Fed has already cut interest rates by 100 basis points since September. Trump previously criticized the Fed for raising rates in the first two years of his presidency and targeted Powell, whom he appointed, for this approach.