Donald Trump Blames Inflation on Biden, Calls for Lower Interest Rates
President Donald Trump has dismissed a higher-than-expected inflation report as "Biden inflation," reigniting his push for lower interest rates.
Following the release of data showing a rise in consumer prices above forecasts, Trump took to Truth Social to post "BIDEN INFLATION UP!" The message followed an earlier call for "Interest Rates should be lowered, something which would go hand in hand with upcoming Tariffs!!!"
The Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 3% year-over-year in January, exceeding December's 2.9% gain.
Despite Federal Reserve Chair Jerome Powell's recent comments indicating no rush on rate increases, Wednesday's inflation pickup could hinder the likelihood of lower rates, including the benchmark federal funds rate.
Trump's focus on interest rates and tariffs comes after his announcement of new steel and aluminum tariffs and his prediction, based on Elon Musk's Department of Government Efficiency, that cuts and regulations would lead to zero inflation and lower rates.
Musk envisions that such measures would result in stable grocery prices and reduced debt payments.