President-elect Donald Trump declared that interest rates remain too high and inflation is still too elevated for comfort, comments that could be seen as a resumption of his tensions with the Federal Reserve.
At a press conference this morning at his Mar-a-Lago club in Florida, Trump stated, “We are inheriting a difficult situation from the outgoing administration, and they’re trying everything they can to make it more difficult. Inflation is continuing to rage, and interest rates are far too high.”
The federal funds rate is currently between 4.25% and 4.5% while the consumer price index of 2.7% was above the Fed’s 2% target. During the Biden administration, Federal Reserve Chairman Jerome Powell initially claimed rising inflation was “transitory” before the central bank hiked interest rates to two-decade highs by July 2023 as inflation peaked at 9.1% in June 2022.
Trump appointed Powell during his first term in 2017 but became dissatisfied with him when the Fed ignored his requests to cut rates. Trump said he would not reappoint Powell but would not force him out prior to the end of his Fed leadership term in 2026.
The next meeting of the central bank’s policymaking Federal Open Market Committee is slated for Jan. 28-29, roughly one week after Trump’s inauguration.
Photo: Gage Skidmore / Flickr Creative Commons
GO! TRUMP GO!
Drop the tariff charade and interest rates will decrease.
The only beneficiary of the Feds rate cuts has been Wall Street while the Real Estate industry continues to suffer and homes remain unaffordable
How can you lower interest rates without increasing inflation. It is the impossible paradox that nobody has been able to figure out.
Yea, watch Trump go. We’ll (everyday people) be the beneficiaries of all his give aways to the rich. He has no plan for housing but a heck of a plan to extend tax cuts for the rich. But, give the people what they want and keep filling the swamp. Go Trump go!
Agreed BC he is only in it to make his family and friends richer. People are waiting for 3% interest rates again that will not happen. Over the past 50 years interest rates have been up to 17 and 18% to buy a new home back in the late 70’s and consistently over the years up in the 9-12% range. Put in programs for the middle class to be able to afford housing again like down payment assistance etc but we won’t see anything for the peons in the next 4 years, but the rich will get richer including the Trump family and all of their corrupt swamp friends. Remember what Elon told us “there’s going to have to be some suffering over the next few years” while they implement their economic programs; yeah for the little guy not for billionaires like him. They need to walk a mile in the average American’s shoes.
Give credit where credit is due. He’s running the country now and he’s not even president while sleepy Joe is running interference with fake awards to former politicians and closing down forests during his last days. Florida has been the White House ever since 11-5