US Vice President J.D. Vice President J.D. Vance speaks on May 1, 2025 during a tour of Nucor Steel Berkeley in Huger, South Carolina, USA.
Kevin Lamarck | Reuters
President Donald Trump and Vice President JD Vance are currently double-repeated the Federal Reserve system to get lower interest rates.
In a social media post on X’s Wednesday morning, Vance urged his boss to ease monetary policy after the latest inflation measurements showed tariffs weren’t putting a significant upward pressure on inflation.
“The president has been saying this for a while, but that’s even more clear: the Fed’s refusal to cut interest rates is a financial malpractice,” writes Vance.
The statement follows a report from the Bureau of Labor Statistics, which shows that the consumer price index has risen by just 0.1% in both all item reads and in the core that excludes food and energy. Each year, the inflation levels were 2.4% and 2.8%, both exceeding the Fed’s 2% target.
Trump had yet to address the CPI number himself on Wednesday, but the president is badgering Federal Open Market Committee Chairman Jerome Powell and his cohort to cut rates. The Fed was last eased in December, and recently officials have expressed concern about the long-term impact of fees on prices. Trump said he hopes for a complete point reduction of 4.25% to 4.5% from the current target level for the Fed fund ratio.
The FOMC announced its interest rate decision in a week, with the market being assigned zero chances of interest rate reduction following a two-day meeting. According to data from the CME Group, traders expect the Fed to be easier in September.
Management staff emphasize eased inflation data and the easing labor market as reasons for lowering rates.
“For me, I say that the combination may be a different time for interest rate cuts, but I hope that the Fed will highlight the ongoing uncertainty and desire not to get too early.
