On April 4, 2025, U.S. President Donald Trump urged Federal Reserve Chair Jerome Powell to lower interest rates, pointing to decreasing energy prices, easing inflation, and improving employment statistics.

In a post on his social media platform, Trump asserted that recent statistics indicated a sixty-nine percent reduction in egg prices over a span of two months and called on Powell to "stop playing politics."

These comments come during a period of increased volatility in global markets following the U.S. announcement of new tariffs on Chinese products.

In retaliation, China enacted a thirty-four percent tariff on all imports from the U.S.

On the same day at a press conference in Virginia, Chair Powell remarked that the Federal Reserve would await more clarity before adjusting interest rates.

He mentioned that the newly introduced tariffs were "significantly larger than anticipated" and were likely to contribute to heightened inflation and slower economic growth.

Powell stressed that the Fed is dedicated to keeping long-term inflation expectations stable and mitigating the risk of a prolonged price increase.

He recognized that while the U.S. economy seems robust, the full impact of the tariffs is still uncertain, and the central bank would refrain from making hurried decisions.

In the wake of the tariff announcements and ongoing uncertainty, U.S. financial markets experienced notable declines.

The S&P 500 fell by 4.8 percent, the Dow Jones Industrial Average dropped by 4 percent, and the Nasdaq Composite decreased by 6 percent, experiencing its largest single-day decline since March 2020.

The Federal Reserve’s current benchmark interest rate stands between 4.25 and 4.5 percent.