Stocks sell off as investors see Trump's inflation 'pipeline' forcing the Fed to hold off on interest rate cuts
Briefly

Inflation in the U.S. has risen to 2.7%, prompting President Trump to urge the Federal Reserve to lower interest rates. He claims that reducing rates could save $1 trillion annually. However, the speed of inflation's rise is concerning, leading to decreased stock investor confidence, as shown by declines in the S&P 500. Initially anticipating a rate cut in September, market probabilities have dropped significantly. Economists note that rising tariffs imposed by Trump are a contributing factor to the inflation, affecting consumer prices visibly in economic data.
Consumer Prices LOW. Bring down the Fed Rate, NOW!!! Fed should cut Rates by 3 Points. Very Low Inflation. One Trillion Dollars a year would be saved!!!
The speed of the rise was "the fastest this century," according to UBS.
The direction of inflation is making a Fed cut less likely, not more. The Fed fights inflation by raising interest rates, which makes money more expensive to borrow.
Tariff costs are strikingly visible in U.S. economic data.
Read at Fortune
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