J.D. Vance aligns with Donald Trump's demand for Jerome Powell to lower interest rates, labeling the current monetary policy as "malpractice."
Stuart Kaiser, the head honcho of Citi's equity trading strategy, voiced his concerns on the bond market and discussed Trump's tariffs, bond yields, economic growth, and the May jobs report.
Former Vice President JD Vance backed President Donald Trump's plea for the Federal Reserve to slash interest rates on Wednesday.
Vance penned in a post on X, "The president has been yammering about this for a while, but it's more evident than ever: refusing to chop rates is plain ridiculous from the Fed."
Trump took to Twitter on Wednesday, reiterating his plea for the Central Bank to drop rates by a point.
"Interest rates should be slashed by a full point!" Trump tweeted, "We'd pay a lot less on debt round the corner if that happened! So important!!!"
In another Twitter post, Trump commented on the Fed, calling for a point reduction in interest rates once again.
"CPIs just published. Superb numbers! The Fed should reduce by a full point. It'd save a fortune on accrued debt interest! Excellent strategic move!!!" Trump expressed on Truth Social.
Inflation Cooled in May
The twin tweets followed the Bureau of Labor Statistics' release of the latest Consumer Price Index data, revealing slower-than-anticipated inflation in May.
The CPI increased by 0.1% in May compared to the previous month, whilst it was up 2.4% year-on-year. These figures marginally missed predictions made by economists polled by LSEG, with the annual CPI edging up from 2.3% the previous month.
Core prices, which exclude more volatile data points like gasoline and food, rose by 0.1% monthly and 2.8% yearly – both figures failing to meet economists' expectations of 0.3% and 2.9%, respectively.
Fed's Cautious Stance
Trump previously appealed to Federal Reserve Chairman Jerome Powell to lower rates last week.
Trump tweeted, "We're already too late at the Fed, my friend! Disaster!" on Truth Social. "Europe has sizzled through 10 rate cuts and we've yet to dip a toe! Irrespective of his actions, our nation is on the up. Go for a full point, baby, Rocket Fuel!"
The latest tweets were posted following the publication of the May employment report by the Labor Department, which showed the American economy added 139,000 jobs during the month. The figure surpassed the estimate of economists polled by LSEG by 9,000 jobs, but fell short of the revised gain of 147,000 jobs added in April.
[1] https://www.bloombergquint.com/onweb/economics/us-economy-growth[2] https://www.cnbc.com/2023/05/24/cpi-inflation-report-for-may-2023.html[3] https://www.thebalancesmb.com/federal-reserve-interest-rates-2515207[4] https://money.cnn.com/calculator/mortgages/mortgage-payments-extra-principal/calculator.html
- Despite President Donald Trump's pleas for the Federal Reserve to lower interest rates and the surprising slowdown in inflation as per the latest Consumer Price Index data, the Fed appears to maintain a cautious stance.
- Amidst the ongoing debate about interest rates and economic growth, Stuart Kaiser's concerns about the bond market and Trump's tariffs are gaining traction in the finance and business world.
- The controversy over interest rate reductions also extends to the trading arena, with Former Vice President JD Vance advocating for the Federal Reserve to cut rates, stating that refusing to do so would be plain ridiculous.
