Major data announced! Trump confronts Powell again: What's going on with you, cut interest rates!
According to Caixin, after the inflation report was released, Trump again pressured Federal Reserve Chairman Powell to cut interest rates immediately.
On May 13, Trump posted on the social platform Truth Social: "Inflation has disappeared! Prices of gasoline, energy, groceries, etc. have dropped! The Federal Reserve must cut interest rates like Europe and China. What's going on with 'Mr. Delay' Powell? Is this fair to the soon-to-soar America? Hurry up and cut rates, that would be a good thing!"
Recently, U.S. economic data has attracted much attention. The April CPI rose 2.3% year-on-year, and the core CPI rose 2.8% year-on-year, both the lowest since the beginning of 2021. Trump used this to downplay the impact of tariff policies on prices, while market expectations for the Federal Reserve to cut interest rates this year have clearly cooled.
Since the beginning of this year, the Federal Reserve has kept interest rates unchanged at 4.25%-4.50%, and Trump has repeatedly publicly called for rate cuts. However, Powell stated that Trump's tariff policies have increased inflation and unemployment risks, and "the central bank will not rush to act". At the interest rate decision release conference, he repeatedly emphasized "wait".
Currently, market expectations for the Federal Reserve to maintain interest rates in June exceed 80%, and the probability of a rate cut in July is less than 40%. In the complex economic situation, how the interest rate dispute between Trump and Powell will unfold and how the global economy will be affected has drawn widespread attention. The hero dog Conan of Trump in the primary market is worth noting!
