President Trump has continued his criticism of Fed Chair Jerome Powell, this time referring to him as a “numbskull.”
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“We’re going to spend $600 billion a year, $600 billion because of one numbskull that sits here [and says] ‘I don’t see enough reason to cut the rates now,'” said Trump on Thursday in a reference to higher U.S. government interests payments on debt. Trump also said that he may have to “force something” in regard to the federal funds rate.
Trump Calls for Interest Rates to be Cut by 100 Basis Points
Yesterday, Trump called for the interest rates to be slashed by “ONE FULL POINT” on Truth Social following the release of May’s consumer price index (CPI). May’s CPI was lower than expected on a monthly basis, rising by 0.1% compared to the estimate for 0.2%. Yearly CPI rose by 2.4%, in line with the estimate.
Core CPI, which excludes volatile food and energy prices, came in below expectations on both a monthly and yearly basis.
With lower inflation, the Fed has more reason to cut rates. That could provide a boost to a stock market and the economy as individuals and companies are able to borrow at lower rates.
Track inflation and the federal funds rate with TipRanks’ Economic Indicators Dashboard.
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