Trump Urges Fed Must Cut Rates After Cooling Inflation Data

The U.S. President Donald Trump is pushing the Federal Reserve to lower interest rates, using a weaker-than-expected inflation report as his main argument. In a post on social media, Trump said prices for gasoline, groceries, and energy are falling, and he criticized Fed Chair Jerome Powell.

He added, “THE FED must lower the RATE, like Europe and China have done. What is wrong with Too Late Powell?” According to the latest government data, the Consumer Price Index (CPI) rose just 0.2% in April. This follows a rare monthly decline in March and marks the third straight month inflation came in lower than expected. 

Trump said this shows inflation is not a problem anymore, and cutting interest rates would help the U.S. economy grow faster. “Just let it all happen, it will be a beautiful thing!” he wrote. The report showed that some prices dropped sharply.

Egg prices saw the biggest monthly fall in 40 years, after a bird flu outbreak earlier this year caused a spike. Prices for other common groceries like bacon, chicken, and rice also declined. At the same time, prices for some services like airline tickets and hotel stays went down, hinting that people may be cutting back on spending.

Trump’s comments come while he continues to defend his tariff policy. He has placed a 10% global tariff on many countries and is threatening higher duties on specific goods. Economists warn these tariffs could lead to price hikes and slow economic growth, though Trump argues they are necessary to protect American industries.

Potential Impact on Bitcoin, Crypto Market

In case of a Fed rate cut, riskier assets like Bitcoin (BTC) and crypto could gain traction with major investments flowing in. The borrowing costs would decrease, leaving more money for investments. Hence, investors could explore more diverse options, including crypto.

However, if the Fed moves forward with a rate pause or hike, little money would be available for investment due to high borrowing costs. Thus, in case of such a hawkish stance, the Bitcoin and crypto market could see a downturn in the short-term scenario.

While the inflation numbers give hope to rate cut supporters, the Fed is still being cautious. Powell and other officials are worried that the tariffs could bring inflation back up. But with consumer prices cooling off, pressure is building on the Fed to start cutting rates later this year.