Home›Forex›Central Banks›Trump calls for Fed rate cuts as he links falling pric…

Trump calls for Fed rate cuts as he links falling prices to inflation

The comments come after Trump said there was a “good inflation report” and that prices should drop significantly once the Gulf War ends.

Reported · Written up by our desk · Central Banks

FXStreet reports that US President Donald Trump said a recent inflation report was positive, adding that costs were falling quickly and that prices should drop significantly once the Gulf War ends.

Trump also suggested the Fed should lower interest rates for the first time in the remarks, while describing Fed Chair Kevin Warsh as “great” and saying Warsh would “do the right thing,” according to FXStreet.

The outlet notes the Federal Reserve’s role in shaping US monetary policy, with rate changes used to manage inflation around the Fed’s 2% target and support full employment.

FXStreet further outlines how expectations about rate moves can affect the US dollar, since higher rates tend to strengthen the currency by making the US more attractive to international investors, while lower rates typically weigh on the Greenback.

More like this

Sources