US President Donald Trump watches while signing an executive order at an oval office at the White House in Washington, USA, January 31, 2025.
Carlos Barria | Reuters
President Donald Trump He approved the federal reserves for his decision last week to leave interest rates unchanged, which is an early turn from his previous request to alleviate the central bank “immediately”.
In exchange with journalists on Sunday, Trump said By holding your level of borrowing of the key In the range between 4.25% -4.5% was the correct move for the FED.
“I’m not surprised,” he said regarding the decision, according to several reports. “At this point, holding the rate was the right thing.”
The statement stood in a distinct contrast one delivered Trump When the world’s economic forum in Davos, Switzerland, is spoken. On January 23, Trump said he would “demand that interest rates would fall immediately.”
The President has no direct authority over the Fed, although he nomines the chairman as well as other members of the Committee. The current chairman of Jerome Powell is a candidate and a frequent target of criticism of the President.
Markets do not expect the FED to reduce prices by at least June. In his press conference after meeting last Wednesday, Powell has repeatedly claimed that Fed does not have to be in a “rush” Further lower after shaving a full percentage point from the Fed Funds rate from September to December 2024.
Fed decision making potentially agreed after Trump said on Saturday that he would impose aggressive tariffs against Canada, Mexico and China, the three largest American shopping partners. Economists take care that tariffs will increase prices at a time when inflation showed signs of mitigation.
