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President Donald Trump has called on the Federal Reserve to cut interest rates immediately as the chairman of the Fed warned that the president’s new tariffs are likely to drive inflation higher and slow economic growth.

Some shit you should know before you read: If you haven’t checked your 401(k) or stock portfolio lately, you might want to—with your favorite beverage in hand—as global markets are spinning from President Trump’s reciprocal tariff announcements. Since the tariffs were unveiled, the Dow Jones Industrial Average has plunged 2,594 points (a 6.27% drop over five days), while the Nasdaq has fallen 1,331 points, marking a 7.79% decline. The sell-off has spread beyond US borders, with foreign markets also getting hammered amid fears of a prolonged trade war. Some world leaders have expressed interest in negotiating with the US to avoid further economic strain, while others—like China—have responded with retaliatory tariffs on select American goods.

What’s going on: Amid the market turmoil, President Trump called on Federal Reserve Chair Jerome Powell to lower interest rates immediately, arguing that such a move would ease pressure on the economy and stabilize the stock market. Posting on Truth Social, Trump said, “This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always ‘late,‘ but he could now change his image, and quickly.“ Trump also accused Powell of letting politics influence monetary policy, adding, “A BIG WIN for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”

In response—without mentioning Trump directly—Powell warned that the Federal Reserve faces a “highly uncertain outlook” and stressed that the economic fallout from the new tariffs could be more severe than initially expected. Speaking at a business conference, Powell said, “It is now becoming clear that the tariff increases will be significantly larger than expected. The same is likely to be true of the economic effects, which will include higher inflation and slower growth.”

Powell also made it clear that the Fed will not be rushed into a decision. “We are well positioned to wait for greater clarity before considering any adjustments to our policy stance. It is too soon to say what will be the appropriate path for monetary policy,” he said.