Trump’s first inflation report since beginning his second term shows prices have risen more than expected.
Core inflation in January rose 3 percent from a year earlier, more than analysts predictions.
Stocks took a hit in pre-market trading with the S&P 500 down more than one percent following the announcement.
While some economists have warned that Trump’s tariffs would fuel inflation, others pointed out that many businesses put through price rises at the start of the year.
It comes as Federal Reserve Chair Jerome Powell told Senators yesterday that the Fed would not rush cutting interest rates as it continues its battle to tame inflation.
Today’s Consumer Price Index figures may even trigger speculation that the Fed will need to begin raising rates again, Bloomberg reported.
Traders are now betting that the next rate cut will be as far off as December.
Trump remained defiant on Wednesday morning arguing on his Truth social account that ‘interest rates should be lower.’
Stocks took a hit in pre-market trading with the S&P 500 down more than one percent following the announcement
‘Interest Rates should be lowered, something which would go hand in hand with upcoming Tariffs!!! Lets Rock and Roll, America!!!’ he wrote.