Trump once again exerts pressure! Calls on the Federal Reserve to lower interest rates.

U.S. President Donald Trump once again pressured the Federal Reserve, calling for a reduction in interest rates to complement the economic policies he is pursuing in his second term, including imposing tariffs and expanding tax breaks. Trump posted on social media on Wednesday, saying, "Interest rates should be lowered, which goes hand in hand with the upcoming tariff measures." His comments come as Federal Reserve Chairman Jerome Powell is set to testify before the House Financial Services Committee. The day before Trump made the above comments, Powell testified before the Senate, saying that there is currently no need to rush to adjust interest rates, further indicating that the Federal Reserve will remain patient and not immediately lower borrowing costs in the near future. In fact, the Federal Reserve has cut rates at its last three meetings in 2024, but decided to temporarily postpone further adjustments to the benchmark interest rate at its January meeting. Powell has repeatedly refused to comment on how the Federal Reserve will respond to Trump's policy changes, emphasizing that the Federal Reserve's decisions will depend on the specific policies implemented and their overall impact on the economy. Trump's latest remarks differ from his statements earlier this month. At that time, he had stated that the Federal Reserve keeping rates unchanged was the "right decision." However, Trump has always shown a keen interest in the Federal Reserve's monetary policy, especially during his first term, when he publicly criticized Powell and asked for rate cuts. While past presidents typically avoid commenting on the Federal Reserve's policy decisions, Trump often intervenes in central bank affairs, even stating in a virtual speech at the Davos Forum last month that if elected president, he would immediately demand a significant reduction in interest rates. He also told Bloomberg during his campaign that he should have the right to offer advice on rates to Powell and claimed to have a deep understanding of the issue as a businessman. Trump's economic policy proposals during his campaign included imposing higher tariffs on Chinese imports, steel, and aluminum products, as well as postponing tariffs on Canada and Mexico, while promising to implement "reciprocal tariffs" on multiple countries within the week. These policy measures have heightened market uncertainty and may have far-reaching implications for the U.S. economic outlook. Many mainstream economists warn that Trump's tariff policies could push up inflation, which has always been a concern for American voters. In the 2024 presidential election, inflation is also an important factor influencing the outcome and may help Trump return to the White House to some extent. Data released on Wednesday showed that U.S. inflation in January slightly exceeded expectations, leading to a rebound in U.S. Treasury yields and the U.S. dollar. The 12-month CPI rate accelerated to 3%, higher than the market consensus of 2.9%, while the core CPI rate was 3.3%, higher than December's 3.2% and the market's expectation of 3.1%. As a result of this data, the 10-year Treasury yield was at 4.634%, the two-year Treasury yield was at 4.380%, and the U.S. dollar index rose by 0.5%, with all indicators rising after the CPI report was released.