The US Vice President JD Vance speaks during a tour of Nucor Steel Berkeley in Huger, South Carolina, USA, May 1, 2025.
Kevin Lamarque | Reuters
President Donald Trump and Vice President JD Vance are now twice together in order to obtain lower interest rates.
In a social media post on Wednesday morning on X, Vance repeated that the central bank makes monetary policy easier after the recent inflation values ​​have shown that the tariffs do not exert considerable upward pressure on inflation.
“The president has said this for a while, but it is even clearer: the rejection of the Fed to lower interest rates is monetary grievances,” wrote Vance.
The explanation followed a report by the Bureau of Labor Statistics, which shows that the consumer price index has only increased by 0.1% in both all-item reading and the core that excludes food and energy. Every year the respective inflation level was 2.4% and 2.8%, both above the 2% goal of the Fed.
While Trump himself did not have to tackle the CPI numbers on Wednesday, the President described the chairman Jerome Powell and his cohorts in the Federal Open Market Committee to reduce interest rates. The FED recently loosened in December, and the officials have recently taken care of the longer -term effects that the tariffs will have on prices. Trump said he wanted to reduce a full percentage point from the current target level for the Fed fund rate of 4.25%-4.5%.
The FOMC will publish its interest decision in a week, and the markets have a probability of reducing interest after the two -day meeting. Traders expect the Fed to make it easier according to CME Group data in September.
Administrative officers have emphasized the loosening inflation data and a moderating labor market as reasons for reducing interest rates.
“For me, this combination says that it may be time for a different reduction in installments, but I expect the Fed to emphasize the continuing uncertainty and the desire not to act too early. It is a difficult place,” said Elyse Exercise, head of the investment strategy at JP Morgan Wealth Management.