Donald Trump called for interest rates in the US to be cut last night even after inflation hit a seven-month high. Closely-watched figures showed that inflation in the world’s biggest economy rose from 2.9 per cent in December to 3 per cent in January – their highest level since June. The rise bolstered the case for the Federal Reserve – America’s central bank – to proceed slowly. But writing on his Truth Social platform, Trump said: ‘Interest rates should be lowered, something which would go hand-in- hand with upcoming tariffs! Let’s rock and roll, America!’.
But the President is likely to be disappointed, as Fed chairman Jerome Powell insisted ‘we do not need to be in a hurry’ given the strength of the economy and threat of inflation. He added that the Fed must ‘just focus on doing our job and stay out of politics’. Costs crunch: Donald Trump (pictured) called for interest rates in the US to be cut last night even after inflation hit a seven-month high.
Analysts warned Trump’s tariffs could raise prices. Paul Ashworth at Capital Economics said: ‘With Trump threatening wide-ranging inflationary tariffs, the Fed won’t resume cutting interest rates this year.’. Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
