A lower inflation than expected During May, the conviction that the Federal Reserve It will begin to cut interest rates in September, instead of waiting for longer. The government of Donald Trump took advantage of the publication index to consumer (CPI) to question the monetary policy of Jerome Powellhead of the Fed.
After an official report showed that the underlying CPI rose only 0.1% in May, after an increase of 0.2% in April, the short -term interest fees operators valued 70% the possibility of a reduction of a quarter quarter in the official interest rate of the Fed for September, compared to the previous 57%.
The cut of interest rates is a claim of President Donald Trump to the head of the Fed, Jerome Powell, amid the inflationary tension that increased by the commercial war unleashed after the tariffs imposed by the US.
The Fed, again under pressure
This time was the vice president James David Vance who criticized the policy of the Fed. The official said Wednesday, after the publication of the latest inflation data, that the reticence of the Central Bank to cut interest rates is “Malo monetary praxis.”
In an X publication, Vance said: “The president has been saying this for a long time, but now he is even clearer: the refusal of the Fed to cut the types is a bad monetary praxis.” Republican management wants Powell Motorice to boost economic growth, although driving The Federal Reserve is cautious Faced with the fears that the inflation of the inflation later.
The US inflation data, better than expected
The labor statistics office of the Labor Department reported that consumer prices in the US increased 0.1% in May, after an increase of 0.2% in April. The year -on -year inflation rate reached 2.4% in May, slightly above 2.3% in April but below the 2.5% provided for the market.
The underlying inflation, which excludes volatile food and energy components, also increased 0.1% in the month, below April 0.2%. The 12 -month underlying inflation rate remained stable at 2.8%.
The Federal Reserve is expectedwhich uses different inflation measures for its 2%target, Keep your reference interest rate In the range of 4.25%-4.50% at your meeting next Wednesday.
It is that those responsible for monetary policy are monitoring the impact of Trump tariffs on the economy and, in particular, in inflation for the coming months. Economists anticipate that inflation could be accelerated in the near future due to these tariffs. May data showed that the lowering of fuels contributed to the modest general increase in prices.
Source: Ambito
