Trump Urges Fed to Cut Rates, Says Prices Are Falling Across the Board

• President Donald Trump urged the Federal Reserve to lower interest rates, claiming no inflation and falling prices for gasoline, energy, and groceries, as stated in a Tuesday Truth Social post.
• His call for rate cuts, critical of Federal Reserve Chairman Jerome Powell, aims to stimulate economic growth but faces challenges from the Fed’s data-driven, independent approach amid lingering inflation concerns.

President Donald Trump’s renewed push for the Federal Reserve to cut interest rates, articulated in a Tuesday Truth Social post, underscores his belief that monetary policy should align with his economic vision for a thriving U.S. economy. Trump asserted that inflation is absent and prices for essentials like gasoline, energy, and groceries are declining, creating an opportune moment for the Federal Reserve to lower rates, mirroring actions taken by Europe and China. His call targets Federal Reserve Chairman Jerome Powell, whom he criticized as “Too Late Powell,” suggesting that delayed action unfairly hinders America’s potential to “blossom” economically.

The president’s comments reflect a broader debate about the Federal Reserve’s role in balancing inflation control with economic growth. Recent data indicates moderating inflation, with consumer prices showing signs of stabilization, which could support Trump’s argument for rate cuts to stimulate demand. Lower interest rates typically reduce borrowing costs, encouraging consumer spending and business investment, which align with Trump’s goal of unleashing economic potential. His reference to Europe and China highlights their looser monetary policies, which have aimed to bolster growth amid global uncertainties.

However, the Federal Reserve operates independently, prioritizing data-driven decisions over political pressures. Powell has emphasized the need to monitor inflation and employment metrics closely, especially after the aggressive rate hikes initiated in 2021 to curb post-pandemic price surges. Trump’s claim of no inflation may oversimplify the economic landscape, as persistent pressures in sectors like housing and services remain concerns. The Fed’s cautious stance reflects the risk of premature rate cuts reigniting inflation, which could undermine long-term stability.

Trump’s vision of a “beautiful” economic bloom hinges on policy alignment, but the Fed’s response will likely depend on incoming economic indicators. His remarks intensify scrutiny on monetary policy as markets await signals of rate adjustments in 2025.

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