President Donald Trump has denied any involvement in the recent surge in inflation, despite economists expressing concern about its impact on the economy. The president’s comments came during an interview with Fox News’ Sean Hannity, where he claimed to have “nothing to do” with the rising prices.
However, experts warn that Trump’s policies, including mass deportation and tariffs, could be contributing to the inflationary pressures. Moody’s chief economist Mark Zandi said that anticipation of the president’s economic policies may be driving up expectations of higher inflation.
The Consumer Price Index rose 3% in January, with a 0.5% monthly increase in December. While economists are hesitant to assign blame before the full effects of Trump’s presidency become apparent, they acknowledge that presidents’ influence on prices is limited.
Trump had previously promised to bring down costs during his campaign, but has since backtracked on this promise. Experts caution that the relationship between consumer expectations and actual inflation is complex, and that policymakers must consider these factors when making decisions about interest rates and monetary policy.
Despite the concerns, the Federal Reserve’s chair, Jerome Powell, emphasized the need for caution with interest rate cuts ahead, citing hot inflation data that suggests borrowing costs may stay high.
Source: https://fortune.com/2025/02/19/inflation-trump-blames-biden-musk-prices