Trump's Bold Call: Major Rate Cut in Response to Inflation Data

Amid rising consumer inflation, President Donald Trump urges the Federal Reserve for a substantial rate cut. Despite the modest CPI increase, Trump's trade policies pose inflation risks. With a Fed meeting looming, predictions vary on future rate cuts. Economists caution against potential long-term inflation and recession risks.

President Donald Trump has reiterated his urgent request for the Federal Reserve to implement a significant rate cut following new consumer inflation data released on Wednesday.

The May Consumer Price Index, which Trump lauded as a "great" number, recorded a 2.4% increase compared to May 2024, slightly higher than April's year-over-year rate. Despite the modest rise, expectations of accelerating inflation persist due to Trump's sweeping import tariffs.

As the Federal Reserve prepares for its upcoming policy meeting, the central bank is expected to maintain its current interest rate range, with broader economic implications of tariffs at the forefront. While markets anticipate potential rate cuts, economists warn of sustained inflation and recession risks.

(With inputs from agencies.)