Trump wants interest rate cuts. The market isn't buying it.
Just before the release of Wednesday’s monthly consumer price report, President Donald Trump called for lower interest rates in a post on his Truth Social platform.
Just before the release of Wednesday’s monthly consumer price report, President Donald Trump called for lower interest rates in a post on his Truth Social platform.
“Interest Rates should be lowered, something which would go hand in hand with upcoming Tariffs!!! Lets Rock and Roll, America!!!” he wrote.
Upon the report’s release just a few minutes later, investors indicated they had other plans.
With the pace of inflation for January coming in above forecasts, stocks tumbled while borrowing costs climbed. Those moves reflect expectations that the Federal Reserve, which helps set interest rates throughout the economy, will now keep those rates higher for longer.
“The Fed will see January’s hot inflation print as confirmation that price pressures continue to bubble beneath the economy’s surface,” Bill Adams, chief economist for Comerica Bank, said in a note to clients. “That will reinforce the Fed’s inclination to at least slow and possibly even end rate cuts in 2025.”
Rating: 5