President Donald Trump said it was the “perfect time” for Federal Reserve Chairman Jerome Powell to reduce interest rates.
“He is always ‘late,’ but he could now change his image, and quickly. Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months – A BIG WIN for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!” the president said on Truth Social on Friday.
Trump announced increased reciprocal tariffs on trade partners earlier this week on “Liberation Day.” Many Asian countries saw an increase in the percentage charged on their items coming into America.
China’s reciprocal tariff on all its items is 34 percent, while India’s and Japan’s are 27 percent and 24 percent, respectively.
Lesotho and Saint Pierre Miquelon have the highest reciprocal tariffs on their items, which is now 50 percent.
The current interest rate for a 30-year fixed rate mortgage is 6.64 percent. Furthermore, the interest rate for federal funds is 4.5 percent.
The 10-year U.S. Treasury bond’s interest rate is now below 4 percent, the first time this has happened since October 2024.
Investopedia says the bond’s interest rate “is the interest rate U.S. government pays to borrow money for a decade, serving as a benchmark for other interest rates and a key indicator of investor sentiment about economic conditions.”
According to USA Today, Jerome Powell said on Friday the Federal Reserve would remain “vigilant” regarding inflation.
“Our obligation is to keep longer-term inflation expectations well anchored to make certain that a one-time increase in the price level does not become an ongoing inflation problem,” Powell said in a speech at a conference in Virginia.
“While uncertainty is high and downside risks have risen, the economy is still in a good place,” he added.
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Zachery Schmidt is the digital editor of The Star News Network. Email tips to Zachery at zschmidt1717@gmail.com. Follow Zachery on Twitter @zacheryschmidt2.
Photo “Jerome Powell” by Board of Governors of the Federal Reserve System.
