Elizabeth Warren: Trump is standing in way of interest rates coming down

Senator Elizabeth Warren (D-Mass.) criticized President Donald Trump’s tariff policies on Wednesday, arguing that they are hindering the Federal Reserve’s ability to lower interest rates for American consumers.

“Americans deserve lower interest rates and lower costs, but Donald Trump and his reckless tariffs are standing in the way of that relief,” Warren wrote on X.
“The Fed is getting boxed out by the President’s chaotic economic policies.”

Her remarks came shortly after the Federal Reserve decided to keep interest rates steady at 4.25%–4.50% for the fourth straight meeting. Fed Chair Jerome Powell cited tariff-related inflation concerns as a significant factor preventing rate cuts.

The Fed also revised its core PCE (Personal Consumption Expenditures) inflation forecast upward to 3.1% for 2025, from 2.8% in March. Powell pointed to tariffs as the reason behind the increase, saying,

“We’re beginning to see some effects” on goods prices, especially in personal computers and audiovisual equipment.

He added that business surveys show many companies are planning to pass tariff costs along the supply chain, which ultimately means higher prices for consumers.