US President Donald Trump has dismissed a higher-than-expected inflation report as “Biden inflation” after calling for lower interest rates. The President made the comments on his social media platform, Truth Social, amid a rapid back-and-forth with Federal Reserve Chair Jerome Powell earlier in the day.
According to data released by the Bureau of Labor Statistics, consumer prices rose 3% over the prior year in January, up from December’s 2.9%. This uptick may make it less likely for the Fed to cut interest rates.
Trump had previously announced new tariffs on steel and aluminum, which could also impact interest rates. The President’s comments on inflation come after a meeting with Tesla CEO Elon Musk, who predicted that his proposed cuts to government spending would lead to lower interest rates and zero inflation.
The rapid exchange between Trump and Powell may have reduced expectations for another Fed rate cut until later in the year.
Source: https://finance.yahoo.com/news/trump-dismisses-hot-inflation-report-as-biden-inflation-after-another-call-to-lower-interest-rates-150051992.html