Donald Trump and his administration have been ignoring the warnings of economists for months that his rate policy would be the fuel that the inflation needed to come back.
In fact, the White House press office took the victory rounds with every new data trap that showed that inflation is not increasing.
Those victory dances ended on Tuesday morning when the numbers of June revealed that inflation is increasing.
The consumer price index increased by 2.7 percent compared to a year ago, the fastest pace since February, data released by the Bureau or Labor Statistics shown on Tuesday. That is slightly higher than expected and is an annual pace of 2.4 percent in May.
The “core” inflation, which spends volatile food and energy prices and is seen as a reliable meter for underlying price pressure, also shifted higher. Those prices rose by 2.9 percent compared to the same time last year.
In the course of the month, prices rose by 0.3 percent, a remarkable pick -up with an increase of 0.1 percent in May. The core prices rose 0.2 percent.
It seems calm that inflation leaves the economy, and Trump’s unilateral rate decision is what causes the problem.
Trump responded to his rates that caused rising inflation by recommending a movement that would crash the economy.
Trump said: “Very light, essentially they were exactly as expected, very low inflation. So what you have to do is lower the rate. The Fed should reduce the speed immediately.”
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Trump’s requirement would make inflation worse. It is wrong to curb inflation in lower prices. Since Trump is not interested in reducing prices, and his only goal is self -enrichment, he wants lower interest rates because they would be good for him.
Donald Trump chose a mandate to lower inflation. Instead, he tries to raise delusion of inflation while claiming the victory.
What do you think of Trump and inflation? Share your thoughts in the comments below.
