President Donald Trump said he would “require immediate interest rate cuts”

President Donald Trump delivered its first salvo at the Federal Reserve, saying on Thursday it would pressure it to lower interest rates.

Addressing an assembly of world leaders at the World Economic Forum in Davos, Switzerland, the new president did not mention the Fed by name in a wide-ranging policy speech but made it clear he would push for lower rates.

“I will demand an immediate reduction in interest rates,” Trump said. “Similarly, they should fall around the world. Interest rates should follow us everywhere.”

The comments were an initial blow to Fed officials with whom he had a highly contentious relationship during his first term in office. He often criticized the chairman Jerome Powellwho was appointed by Trump, occasionally calling politicians “stupid” and comparing Powell to a golfer who can’t putt.

Stocks were largely unresponsive to the announcements, although the policy-sensitive 2-year Treasury yield fell to 4.29%.

In the flurry of activity surrounding the president’s first week in office, he did not discuss his views on monetary policy. However, he indicated during the presidential campaign that he should have a say in interest rate decisions.

For their part, Powell and his colleagues emphasized the importance of Fed independence. In particular, Powell has often insisted that the central bank does not make decisions based on political considerations. Trump has no statutory authority over the Fed, although he nominates members to the Board of Governors.

The Fed’s independence is seen as important to stable markets, although the central bank has come under fire in recent years for calling the spike in inflation in 2021 “transitional,” leading to a series of aggressive hikes.

Trump’s comments came less than a week before the Fed’s two-day meeting, which ends on Wednesday.

Markets see little chance of the Fed cutting its benchmark borrowing rate further, which is currently in a range of 4.25% to 4.5%, after a full rate cut in the final four months of 2024. Traders are pricing in The first rate cut is likely in June, with a 50-50 chance of the next move before the end of the year, according to CME Group data.

The Fed cut the funds rate after raising it by 5.25 percentage points as part of its efforts to fight inflation. Although inflation is still above the Fed’s target of 2%, officials said policy should not be so restrictive as they see the pace of price increases slowing.

Trump blamed the spike in inflation under former President Joe Biden on “wasteful deficits.”

“The result is the worst inflationary crisis in modern history and skyrocketing interest rates for our citizens and even the entire world. “The prices of food and almost everything else known to mankind have skyrocketed,” he said.

A Fed spokesman declined to comment on Trump’s remarks.