Interest rates must be lowered and this will "go hand in hand" with the planned tariffs, US President Donald Trump said, despite economists' expectations that the tariffs would fuel inflation and delay interest rate cuts, BTA reports.
Trump earlier this week significantly increased tariffs on steel and aluminum to 25 percent in an effort to help struggling American industry, but risking igniting a trade war.
"Interest rates must be lowered, which will go hand in hand with the upcoming tariffs!!!", Trump wrote in a post on his social network "Trump Social" (Truth Social).
However, Federal Reserve Chairman Jerome Powell told the Senate on Thursday that the central bank is in no rush to cut short-term interest rates given the overall strong economy.
Powell will also speak to the House of Representatives later today. The tariffs could fuel U.S. inflation and delay interest rate cuts.