Trump demands interest rates to be cut even after inflation hit a seven-month high

Published on: February 12, 2025

By DAILY MAIL CITY & FINANCE REPORTER

Updated: 22:01 GMT, 12 February 2025

Donald Trump called for interest rates in the US to be cut last night even after inflation hit a seven-month high.

Closely-watched figures showed that inflation in the world’s biggest economy rose from 2.9 per cent in December to 3 per cent in January – their highest level since June.

The rise bolstered the case for the Federal Reserve – America’s central bank – to proceed slowly.

But writing on his Truth Social platform, Trump said: ‘Interest rates should be lowered, something which would go hand-in- hand with upcoming tariffs! Let’s rock and roll, America!’

But the President is likely to be disappointed, as Fed chairman Jerome Powell insisted ‘we do not need to be in a hurry’ given the strength of the economy and threat of inflation.

He added that the Fed must ‘just focus on doing our job and stay out of politics’.

Costs crunch: Donald Trump (pictured) called for interest rates in the US to be cut last night even after inflation hit a seven-month high

Analysts warned Trump’s tariffs could raise prices.

Paul Ashworth at Capital Economics said: ‘With Trump threatening wide-ranging inflationary tariffs, the Fed won’t resume cutting interest rates this year.’

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Trump demands interest rates to be cut even after inflation hit a seven-month high

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Trump demands interest rates to be cut even after inflation hit a seven-month high