President Donald Trump has decried the “incalculable” damage Federal Reserve Chairman Jerome Powell has done by not lowering interest rates after inflation rose less than expected from a Tuesday report.
The Consumer Price Index (CPI) increased by a seasonally adjusted 0.2 percent in July and 2.7 percent on an annualized basis, according to the Bureau of Labor Statistics (BLS).
These figures are slightly less than expected; Dow Jones estimates 0.2 percent for the month of July and 2.8 percent annually.
The CPI measures increases in prices based on surveying a basket of goods.
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Core inflation, which is measured by excluding food and energy prices, increased 0.3 percent last month and 3.1 percent from 12 months ago. The Fed considers core CPI a better estimate of long-term trends for inflation. The core print of CPI was the largest increase since January.
Trump has continued to bash Powell, believing he has waited too long to lower interest rates. He wrote on Tuesday on Truth Social:
Jerome “Too Late” Powell must NOW lower the rate. Steve “Manouychin” really gave me a “beauty”when he pushed this loser. The damage he has done by always being Too Late is incalculable. Fortunately, the economy is sooo good that we’ve blown through Powell and the complacent Board. I am, though, considering allowing a major lawsuit against Powell to proceed because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings. Three Billion Dollars for a job that should have been a $50 Million Dollar fix up. Not good!
He also argued that tariffs have not led to inflation, counter to establishment economic thinking on the issue:
Trillions of Dollars are being taken in on Tariffs, which has been incredible for our Country, its Stock Market, its General Wealth, and just about everything else. It has been proven, that even at this late stage, Tariffs have not caused Inflation, or any other problems for America, other than massive amounts of CASH pouring into our Treasury’s coffers. Also, it has been shown that, for the most part, Consumers aren’t even paying these Tariffs, it is mostly Companies and Governments, many of them Foreign, picking up the tabs. But David Solomon and Goldman Sachs refuse to give credit where credit is due. They made a bad prediction a long time ago on both the Market repercussion and the Tariffs themselves, and they were wrong, just like they are wrong about so much else. I think that David should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ, and not bother running a major Financial Institution.
“Today’s CPI report revealed that inflation beat market expectations once again and remains stable, underscoring President Trump’s commitment to lower costs for American families and businesses,” White House press secretary Karoline Leavitt said in a statement on Tuesday.
She continued, “The Panicans continue to be proven wrong by the data – President Trump’s tariffs are raking in billions of dollars, small business optimism is at a five-month high, and real wages are rising. The American people have rightfully put their trust in President Trump’s America First agenda that is Making America Wealthy Again.”
During a July Breitbart News policy event, Bessent said that the Fed could use a “little imagination” to lower interest rates. He also accused the Fed of suffering from “tariff derangement syndrome” by not lowering interest rates, as Powell has said that tariffs would lead to an increase in inflation.
Sean Moran is a policy reporter for Breitbart News. Follow him on X @SeanMoran3.
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