Trump, who pressured for rate cuts, says "Fed's decision to keep rates steady is the right move"

"Will Demand a Rate Cut" Right After Inauguration
Fed Holds Rates Steady Amid Inflation Concerns

Donald Trump, the U.S. President who had been openly pressuring for an interest rate cut, suddenly expressed support for the Federal Reserve's (Fed) decision to keep rates unchanged. This statement reversed his previous stance just four days after criticizing Fed Chair Jerome Powell and the Fed for "failing to solve the problem."

According to Bloomberg on the 2nd (local time), after returning to the White House from Florida, President Trump said, "(The rate hold) is not surprising," and added, "At this point, maintaining the interest rate was the right thing to do."

The Fed unanimously decided to keep the benchmark interest rate at 4.25?4.50% following a two-day Federal Open Market Committee (FOMC) meeting on the 29th of last month (local time). This decision is interpreted as a response to rising inflation concerns due to high tariffs and strict immigration policies.

This FOMC meeting was held immediately after President Trump's remarks pressuring for a rate cut. In a virtual speech at the World Economic Forum (WEF, Davos) on the 23rd of last month (local time), Trump openly demanded the Fed to lower rates, stating, "I will be demanding that rates be cut immediately."

After the decision to hold the benchmark rate, President Trump promptly criticized on the social networking service Truth Social, saying, "Powell and the Fed have failed to solve the problems they created with inflation."

At a press conference held after the rate hold, Chair Powell refrained from commenting on President Trump's demand for a rate cut, stating, "I will not respond or comment on the president's remarks because it is appropriate not to do so." Regarding whether the Trump administration had directly communicated the demand for a rate cut, he said, "There has been no contact."