President Trump urged the Federal Reserve to decrease interest rates as tariffs come into effect, emphasizing his point in a post on Truth Social. Despite keeping interest rates unchanged for the second consecutive meeting, the Fed adjusted its outlook on inflation and economic growth due to uncertainties surrounding Trump's aggressive tariff plans. Fed Chair Jerome Powell acknowledged that Trump's trade agenda could lead to inflation, impacting price stability. Powell also highlighted the uncertainty surrounding the effects of tariffs on prices, suggesting they could be temporary. Despite market disruptions caused by Trump's trade policies, the Fed maintained its prediction of two rate cuts, prompting some analysts to question the Fed's response to potential inflationary pressures. Powell acknowledged the uncertainties surrounding the impact of tariffs on prices, indicating that the effects could be temporary.