Former U.S. President Donald J. Trump has once again stirred the financial and political stage, declaring that “there is no inflation” in the United States. His remarks come at a critical moment when global markets are closely watching the Federal Reserve’s next move, with mounting speculation that a major interest rate cut could be imminent.


Trump’s Bold Claim


During his recent comments, Trump dismissed the ongoing inflation narrative that has dominated headlines for the past two years. While official inflation data still shows moderate price pressures, Trump argued that real economic activity reflects stability, not the crisis-level inflation often portrayed. His statement aligns with his longstanding criticism of the Federal Reserve, which he has frequently accused of acting too cautiously in monetary policy.


Signals of a Major Rate Cut


Beyond Trump’s declaration, economic indicators are increasingly pointing toward a policy shift:



  • Cooling Inflation Data – Recent reports suggest that consumer prices are rising at a slower pace compared to the peak levels of 2022.


  • Labor Market Signs – Hiring has slowed, wage growth is moderating, and jobless claims are beginning to tick higher.


  • Market Sentiment – Bond yields have softened, and equity markets are rallying, both signs that investors expect easier monetary policy ahead.


Together, these factors strengthen the case that the Federal Reserve may opt for a significant rate cut in its upcoming meetings.


Political and Market Impact


Trump’s statement carries political weight. As the 2024 election cycle heats up, economic narratives will be crucial in shaping voter sentiment. By claiming that inflation is essentially nonexistent, Trump positions himself as the voice of optimism against what he sees as a fear-driven narrative from Washington and Wall Street.


For markets, the message is clear: if inflation fears are overblown and the Fed pivots toward rate cuts, risk assets—including stocks and cryptocurrencies—could see renewed momentum.


The Bigger Question


While Trump’s declaration is bold, economists caution that inflation is not entirely gone. Essential categories such as housing and services continue to show persistent price pressures. However, the debate highlights a broader shift: from fearing runaway inflation to preparing for potential economic slowdown and monetary easing.



👉 The coming weeks will reveal whether Trump’s confident declaration proves prescient—or whether the Fed’s cautious stance prevail