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Trump insisted that his tariffs were necessary to rebalance global trade, accusing other countries of taking advantage of the US. He also called on the Federal Reserve to lower interest rates.
US President Donald Trump and Federal Reserve Chair Jerome Powell. (Reuters File Image)
The Board of Governors of the US Federal Reserve System has scheduled a closed board meeting on Monday at 11:30 am (9:00 am Indian time) after President Donald Trump’s sweeping reciprocal tariffs wreaked havoc on global markets.
This came after Trump called on the Federal Reserve to lower interest rates. On Friday, Federal Reserve Chair Jerome Powell warned that the tariffs could increase inflation, and he said “there’s a lot of waiting and seeing going on, including by us,” before any decisions would be made.
“It is anticipated that a closed meeting of the Board of Governors of the Federal Reserve System at 11:30 am on Monday, April 7, 2025, will be held under procedures set forth in section 261b.7 of the Board’s Rules Regarding Public Observation of Meetings, at the Board’s offices at 20th Street and C Streets, NW, Washington, DC and by audio/video conference call,” read a statement from the Federal Reserve.
The closed board meeting is expected to consider the review and determination of the advance and discount rates to be charged by the Federal Reserve Banks after Trump’s call. The final announcement of the topics discussed will be posted on the Board’s website after the meeting.
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‘Tariffs Will Increase Inflation’: US Federal Reserve
Trump’s tariffs have sent shockwaves across global markets as the Dow Jones Industrial Average fell by 1,343 points, or 3.5%, as of 9:35 a.m. Eastern time, while the Nasdaq composite dropped 4.2%.
The S&P 500 declined by 3.8% in early trading, following its worst week since the COVID-19 pandemic began impacting the global economy in March. This index, significant for many investors’ 401(k) accounts, has decreased by over 20% since reaching a record high less than two months ago.
On Friday, Powell said these tariffs are likely to cause inflation to rise and warned of an “elevated” risk of higher unemployment. However, he said it was “too soon” to consider changes to US monetary policy.
His remarks came after Trump had urged him to cut interest rates immediately and accused him of playing politics in his role running the independent US central bank. “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!” added Trump, who first nominated Powell to run the Fed, before turning against him during his first term.
- Location :
Washington D.C., United States of America (USA)
