Trump calls for 'jerk' Powell to lower interest rates after latest inflation data

Core Viewpoint - President Trump advocates for the Federal Reserve to lower interest rates, citing steady inflation data from December as justification for his position [1][3]. Inflation Data - The Bureau of Labor Statistics reported that the consumer price index (CPI) for December showed a headline inflation increase of 2.7% year-over-year, while core CPI, excluding food and energy, was at 2.6% [2]. - Although inflation remains above the Fed's long-term target of 2%, Trump believes it is low enough to warrant interest rate cuts [3][4]. Federal Reserve's Position - Trump criticized Fed Chair Jerome Powell, suggesting that lower interest rates would benefit the economy and that Powell's inaction would label him as "too late" [3][6]. - The market currently anticipates that the Fed will maintain interest rates in the range of 3.5% to 3.75%, with a 97.2% probability of no changes at the next meeting [12][13]. Political Context - The call for interest rate cuts comes amid a criminal investigation by the Department of Justice into whether Powell misled Congress regarding the Federal Reserve's renovation project [7][9]. - Powell has stated that the investigation is an attempt to pressure the Fed into making policy decisions based on political influence rather than economic evidence [9].