Economic Data Is Telling the Fed to Cut Rates
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President Donald Trump cited new inflation data in continuing to pressure Federal Reserve Chair Jerome Powell to lower interest rates, calling him a "numbskull" but adding that he won't seek to remove him.
Savings rates are still high, but they might not be for long. Here's why now is the time to lock in top yields before the Fed starts cutting rates.
I may have to force something” on interest rates, said Trump, upping the pressure on his campaign against Powell.
The U.S. Federal Reserve will keep interest rates on hold for at least another couple of months, according to most economists polled by Reuters, as risks linger that inflation may resurge due to President Donald Trump's tariff policies.
Vice President JD Vance echoed President Donald Trump's calls for the U.S. central bank to lower interest rates, saying its refusal to do so is "monetary malpractice."
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For context, one thing the central bank does is act as a bank for banks. And like a commercial bank pays interest on its clients deposits, the Fed pays interest on banks' reserves. Texas Republican Senator Ted Cruz has floated the idea of ending that practice and claims it could save $1.1 trillion over a decade.
President Donald Trump said that the softer-than-expected inflation result for May looked great, again calling for the Federal Reserve to cut interest rates by a full percentage point. “CPI JUST OUT.
Federal Reserve Chair Jerome Powell is facing a new barrage of criticism, with Vice President J.D. Vance joining in with President Donald Trump this week to blast the central bank chief for not further easing interest rates after another round of cooler-than-expected inflation data.