Trump: rate cuts will go hand in hand with tariffs

On February 12th, Jinshi Data reported that U.S. President Trump stated on the Truth Social platform that the Intrerest Rate should drop, which will go hand in hand with the upcoming tariff policy, despite economists predicting that the tariff policy will exacerbate inflation and delay rate cuts. On Monday, Trump significantly increased import tariffs on steel and aluminum to 25%, “without exceptions or exemptions,” hoping that this move will help industries in distress in the United States, but it may also trigger a trade war. However, Federal Reserve Chairman Powell told Congress on Tuesday that given the overall strong economy, the Fed is not in a hurry to cut rates again. A Reuters survey shows that the Fed is likely to wait until the next quarter to cut rates again. Data released earlier showed that U.S. consumer prices in January rose more than expected. Since Trump was elected, economists have raised their inflation forecasts because they are concerned that Trump’s policies, especially the tariff policy, may reignite price pressures in the economy. Today’s CPI data may usher in a tense period between the Fed and the White House.