Biden Inflation and Interest Rate Debate
Former US President Donald Trump criticized the recent inflation report, labeling it "Biden inflation." The report indicated a higher-than-anticipated rise in consumer prices.
Trump has repeatedly called for lower interest rates, linking them to tariffs and inflation. However, Federal Reserve Chair Jerome Powell previously stated the need to proceed cautiously with rate decisions. Wednesday's inflation data further emphasizes the likelihood of continued higher rates, as markets had already anticipated a low probability of a Fed rate cut until late 2023.
Trump's focus on interest rates persists after a meeting with Elon Musk, who predicted significant cuts under the Department of Government Efficiency. Musk suggested such cuts could lead to zero inflation and lower interest rates.
Washington correspondent Ben Werschkul provides regular commentary on the intersection of US policy and business impact on Capitol Gains.