The President of the United States, Donald Trump, urged the Federal Reserve (Fed) to reduce interest rates, arguing that inflation has stabilized and the employment situation has strengthened. Trump highlighted that gasoline, food, energy, and mortgage rates have decreased, and pointed to the strengthening of employment as good news for the country's economy during what he described as a transitional phase.
In a message on his Truth Social network, the president stated that consumers have been waiting for a price drop for some time and believes that, with no inflation, the Fed should lower its interest rates. Trump has repeatedly called on the Fed to lower its interest rates, which currently range from 4.25 to 4.5 percent.
The next meeting of the Federal Open Market Committee (FOMC) is scheduled for May 6 and 7, where possible adjustments to interest rates will be evaluated. The president has had disagreements with the Fed chair, Jerome Powell, and has even threatened to fire him, despite the legal restrictions that prevent him from doing so.
Regarding employment figures in the United States, unemployment remained at 4.2 percent in April, with the creation of 177,000 new jobs. Despite this stability, uncertainty and volatility in the markets due to the trade war initiated by Trump have affected the country's economy, which recorded a contraction of 0.3 percent, the first negative figure in three years, according to the latest report from the Bureau of Labor Statistics (BLS).
On the other hand, the International Monetary Fund (IMF) has increased the risk of an economic recession in the United States from 25 percent to 40 percent, as a result of the current situation in the markets.
