Trump Reverses Position On Interest Rates, Says Holding Them Steady 'Right Thing To Do'

After previously saying he would "demand" interest rates drop immediately, President Donald Trump now says he agrees with the decision by the Federal Reserve last week to hold them steady.

The rate-setting Federal Open Market Committee voted Wednesday to keep its key lending rate between 4.25 and 4.50 percent.

It had cut the rate by a full percentage point with three rate cuts between September and December 2024.

When a reporter asked Trump Sunday evening to react to the interest rate decision he said, "I'm not surprised. Holding the rates at this point was the right thing to do."

The Fed has signaled rates will remain on a pause until inflation and labor data change.

Federal Reserve Chairman Jerome Powell noted that inflation has come down over the past two years but remains higher than desired.

"We do not to be a hurry to adjust our policy stance," Powell said.

The central bank has a dual mandate from Congress to tackle inflation and unemployment and doesn't have to listen to the president in setting interest rates.

There are concerns that Trump's tariffs will raise inflation, hurting the chances for more rate cuts this year.