Trump dismisses hot inflation report as 'Biden inflation' after another call to lower interest rates

Published On Feb 12, 2025, 10:00 AM

Former President Trump dismissed a recent inflation report, labeling it as 'Biden inflation' and called for lower interest rates. Following the report revealing a 3% annual rise in the Consumer Price Index (CPI), Trump expressed his opinions via social media, linking inflation, interest rates, and tariffs. The Federal Reserve previously indicated a cautious approach towards interest rate adjustments. The inflation increase complicates the likelihood of rate cuts by the Fed.

Stock Forecasts

SPY

Negative

Given Trump's call for lower interest rates in light of rising inflation, the market's reaction might lead to volatility. Companies sensitive to interest rates, particularly in sectors such as real estate or utilities, could be negatively impacted if the Fed maintains or raises rates to combat inflation.

Related News

Federal Reserve Chair Jerome Powell returns to Capitol Hill on Wednesday for the second day of his semiannual updates on monetary policy.

Investors are now betting that the Federal Reserve will cut interest rates just once more this year, a drastic shift in expectations since late 2024.

SPY
TLT

President Trump's comments come a day after Fed Chairman Jerome Powell said on Capitol Hill that the central bank doesn’t need to “hurry" to lower interest rates.