President Donald Trump indicated Wednesday that the Federal Reserve will cut interest rates in September after the central bank earlier in the day decided to maintain its baseline rate from 4.25% to 4.5%.
The Fed has not cut interest rates since December, and Trump has been fiercely critical of Chair Jerome Powell and the central bank’s desire to keep the status quo despite low inflation and a strong economic outlook. Powell has stated the Fed is being cautious because of uncertainty over Trump’s tariff policies.
After signing the VA Home Loan Program Reform Act, legislation that provides a safety net for home-owning veterans who have fallen on hard times, Trump was asked what he would say to economic analysts who fear that lowering interest rates could lead to higher inflation. The event, which aired live on Newsmax and the Newsmax2 online streaming platform, took place before the Fed announced it was holding its baseline rate steady.
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