Trump: Rate cuts and tariffs will go hand in hand

Odaily Planet Daily News: U.S. President Trump said on the Truth Social social platform on Wednesday that interest rates should be lowered, which will "go hand in hand" with the upcoming tariff policy, although economists expect the tariff policy to increase inflation and delay interest rate cuts. On Monday, Trump sharply increased tariffs on steel and aluminum imports to 25%, "without exceptions or exemptions", hoping that this move will help the struggling U.S. industry, but it may also trigger a trade war. However, Federal Reserve Chairman Powell told lawmakers on Tuesday that the Fed is in no hurry to cut interest rates again given the overall strong economy. A Reuters poll showed that the Fed is expected to wait until next quarter before cutting interest rates again. Data released earlier showed that U.S. consumer prices rose more than expected in January. Since Trump's election, economists have raised their forecasts for inflation because they are worried that Trump's policies, especially tariffs, may reignite price pressures in the economy. Analyst Enda Curran said that today's CPI data may usher in a period of tension between the Federal Reserve and the White House. Analyst Anstey said that just over half an hour before the release of the CPI report, Trump posted on his social platform Truth Social that "interest rates should be lowered." This does not seem to be a good time. If the Fed cuts interest rates at this time, it will definitely increase the risk of continued price increases. (Jinshi)