Trump Mocks 'Biden Inflation' After Calling for Lower Interest Rates
President Donald Trump on Wednesday morning dismissed a higher-than-predicted inflation report as "Biden inflation" after urging for a reduction in interest rates. Following the release of data indicating an increase in consumer prices, the US president took to Truth Social, posting "BIDEN INFLATION UP!"
This post follows an earlier one on Wednesday morning, where Trump stated, "Interest Rates should be lowered, something which would go hand in hand with upcoming Tariffs!!!" He added, "Lets Rock and Roll, America!!!" without specifying whether he meant the Federal Reserve's short-term rate, the 10-year Treasury yield, home mortgage rates, auto loans, or a combination of these.
At 8:30 a.m. ET, between the two posts, the Bureau of Labor Statistics released data showing a 3% increase in the Consumer Price Index (CPI) over the previous year in January, up from December's 2.9% annual gain.
Trump's rapid response on the interconnected issues of interest rates, tariffs, and inflation came after Federal Reserve Chair Jerome Powell told lawmakers on Tuesday that "we do not need to be in a hurry" on rates. Wednesday's rise in inflation may make lower rates less likely when it comes to the Fed's benchmark federal funds rate.
Trump's mention of tariffs followed his announcement of new 25% tariffs on steel and aluminum earlier this week, with promises of reciprocal tariffs as early as today.
On Tuesday afternoon, Trump met with tech billionaire Elon Musk in the Oval Office, where he predicted that Musk's Department of Government Efficiency would cut the federal deficit in half. Musk suggested that these cuts, along with deregulation, would lead to zero inflation and lower interest rates.