US inflation remains high, sparking concerns about the economy and President Trump’s re-election chances. Republicans predict a low 0.1% inflation rate, while Democrats foresee a higher 4%. The latest consumer price index (CPI) numbers for December are expected to be closely watched, as they could indicate whether the Federal Reserve can cut interest rates further. If core CPI stays at 3.3%, it would suggest that inflation is still too high to support more rate cuts, potentially derailing Trump’s re-election hopes before they even begin.
Source: https://www.bloomberg.com/opinion/articles/2025-01-14/inflation-could-derail-trump-2-0-before-it-starts