Traders on Thursday bet the U.S. Federal Reserve will resume cutting interest rates in June and probably deliver a full percentage point of reductions to its policy rate by the end of the year. after data showed inflation last month was softer than economists had expected.

President Donald Trump is ratcheting up pressure on the Federal Reserve to cut interest rates, accusing Fed Chair Jerome H. Powell of “playing politics” and of acting too slowly to respond to changes in the economy.

US President Donald Trump’s sweeping new tariffs have gone into full effect. When Mr Trump announced the latest round of tariffs on April 2, he declared that the US would now tax nearly all of America’s trading partners at a minimum of 10% – and impose steeper rates for countries that he says run trade surpluses with the US.

Trump has promised higher rates for his latest and most severe volley of duties, which he calls “reciprocal” tariffs. With so many back-and-forth tariff actions and threats, it can be tough to keep track of where things stand.

President Donald Trump shared on Truth Social that he has “ authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%.” Trump also raised the tax rate on Chinese imports to 125%.

Federal Reserve policymakers worry U.S. President Donald Trump's trade policy could deal a blow to economic growth, but are signaling they will not be quick to ride to the rescue with interest rate cuts because they expect higher tariffs to boost inflation.

President Donald Trump has made it abundantly clear he wants the Federal Reserve to cut interest rates. Trump's tariffs initially led to lower U.S. Treasury yields. Federal Reserve Chair Jerome Powell has largely taken a wait-and-see approach so far.