Former President Donald Trump is intensifying his calls for the Federal Reserve to lower interest rates, seizing on newly released inflation data that came in weaker than expected. In a pointed social media post, Trump highlighted falling prices for essentials like gasoline, groceries, and energy while taking direct aim at Fed Chair Jerome Powell.
“THE FED must lower the RATE, like Europe and China have done. What is wrong with Too Late Powell?” Trump wrote, using the latest Consumer Price Index (CPI) figures to bolster his argument.
Inflation Shows Signs of Cooling
According to government data, the CPI rose by just 0.2% in April, following a rare monthly decline in March. This marks the third consecutive month of lower-than-expected inflation, suggesting price pressures are easing across key sectors.
Trump emphasized that this trend indicates inflation is no longer a pressing concern and argued that cutting rates would accelerate U.S. economic growth. “Just let it all happen, it will be a beautiful thing!” he added, referring to the potential benefits of lower borrowing costs.
The report revealed notable price declines:
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Egg prices experienced the steepest monthly drop in four decades, after earlier spikes linked to a bird flu outbreak.
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Other grocery staples, including bacon, chicken, and rice, also saw prices fall.
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Meanwhile, service costs such as airline fares and hotel stays declined, suggesting softer consumer demand.
Tariff Tensions and Economic Risks
Trump’s renewed focus on rate cuts comes as he continues to defend his aggressive tariff policies. His administration imposed a 10% global tariff on imports and has threatened even steeper duties on select goods. While economists caution that these tariffs could reignite inflation and hinder growth, Trump insists they are essential to protect American industries.
Crypto Markets Watching Fed Moves Closely
Beyond traditional markets, the Federal Reserve’s interest rate decisions could have significant implications for cryptocurrencies like Bitcoin (BTC). A rate cut would lower borrowing costs, potentially fueling increased investment in riskier assets, including crypto.
Conversely, if the Fed opts to maintain current rates or raise them, tighter financial conditions could limit investment flows, posing short-term challenges for the crypto market.
Fed Remains Cautious Despite Pressure
While cooling inflation offers hope to advocates of rate cuts, the Federal Reserve remains cautious. Powell and other Fed officials are concerned that Trump’s tariff measures could reverse recent progress on inflation control.
Nonetheless, as consumer prices show sustained moderation, pressure is building on the Fed to consider easing rates later this year.
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