Biden Inflation Reignites Trump's Call for Rate Cuts and Tariffs
Former President Donald Trump has decried a surge in inflation as "Biden inflation" and reiterated his demand for lower interest rates.
Following the release of data showing a higher-than-expected rise in consumer prices, Trump took to Truth Social to post, "BIDEN INFLATION UP!"
His comments come after a previous post calling for lower interest rates and tariffs, prompting speculation about his target. The Federal Reserve is considering adjusting short-term rates, while bond yields, home mortgages, and auto loans may also be impacted.
The latest Bureau of Labor Statistics data indicates a 3% increase in the Consumer Price Index over the past year, exceeding December's 2.9% growth.
Trump's remarks follow Federal Reserve Chair Jerome Powell's cautious stance on interest rates. The Wednesday inflation report further diminishes the likelihood of rate cuts this year.
The former president's mention of tariffs coincides with his recent announcement of new steel and aluminum tariffs and his intent to unveil reciprocal measures.
On Tuesday, Trump predicted significant savings and deficit reduction through a newly established Department of Government Efficiency. Elon Musk, appointed to head the department, anticipates zero inflation and lower interest rates as a result.
Investors face mounting uncertainty as markets assess the potential impact of these policies on business and financial markets.