On April 4, 2025, U.S. President Donald Trump urged Federal Reserve Chair Jerome Powell to cut interest rates, pointing to decreasing energy costs, declining inflation, and increasing job numbers.

In a post on his social media platform, Trump highlighted that recent figures indicated a sixty-nine percent plunge in egg prices over a two-month period and urged Powell to "stop playing politics."

These comments come in the wake of increased volatility in global markets following the U.S. announcement of new tariffs on Chinese imports.

In retaliation, China implemented a thirty-four percent tariff on all American goods.

On the same day, during a press conference in Virginia, Chair Powell remarked that the Federal Reserve would await more information before altering interest rates.

He remarked that the newly imposed tariffs were "significantly larger than anticipated" and would likely cause higher inflation and slower economic expansion.

Powell stressed that the Fed remains dedicated to sustaining anchored long-term inflation expectations and avoiding the possibility of a prolonged increase in prices.

He recognized that while the U.S. economy seems robust, the complete impact of the tariffs is still uncertain, and the central bank would not move quickly.

In light of the tariff announcements and prevailing 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, marking its most significant daily loss since March 2020.

The current benchmark interest rate set by the Federal Reserve remains between 4.25 and 4.5 percent.