Donald Trump has accused the Biden administration of causing high inflation in the United States and promised to reduce it if he comes back to power. This comes as the Federal Reserve continues to weigh a potential rate cut in September and as escalation remains a key concern for the economy and the upcoming presidential elections.

Trump Vows to Address US Inflation 

In his Truth Social platform, the former President of the United States of America, Donald Trump, has complained about the current administration’s management of standards of living in the United States. Trump accused President Joe Biden and Vice President Kamala Harris of not doing anything to stop inflation which is still prevalent.

He promised to reduce the cost of living which he referred to as an “inflation nightmare.” This shows that Trump was keen to make it a key campaign issue as the citizens of America went on struggling with the increasing prices of goods and services.

KAMALA IS IN THE ADMINISTRATION NOW! SHE DOES NOTHING BUT COMPLAIN ABOUT THE TERRIBLE BORDER, ECONOMY, AND INFLATION. WHY DOESN’T SHE FIX IT NOW? BECAUSE SHE CAN’T – SHE DOESN’T HAVE A CLUE!

Donald Trump Truth Social 02:31 PM EST 08/10/24 @realDonaldTrump

— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) August 10, 2024

Trump’s comments are in sync with current discussions within the Federal Reserve on the most effective approach to the economy. Susan Collins, the president of the Boston Fed, has also hinted that there could be a rate cut as per a Coingape report.

Collins had earlier explained that the Fed is focusing on the CPI figures, which are due to be released next week. As per the report, the data is anticipated to rise slightly from June, but the overall trend will point towards a decrease.

Fed’s Next Moves Eye CPI and PPI Data

The US Federal Reserve is under tremendous pressure to address the rising inflation in the country particularly as the September meeting draws near. However, analysts are uncertain about the magnitude of the next move which can be either 50 basis points or 25 basis points cut.

The upcoming Consumer Price Index (CPI) and Producer Price Index (PPI) data next week will shed light on the US inflation and economic activity.

In addition, the CPI is expected to rise to only 0.2% from June this year. This data, along with the PPI – which measures the prices that producers receive for their goods – will be crucial in deciding the Fed’s future actions. Investors have already begun to factor in the high probability of a large rate cut, with futures contracts showing a 54.5% chance of a 50bp cut in September.

Trump Leads in Poll With Kamala Following

This speculation comes on the heels of the July jobs report, which revealed that hiring had decelerated and the unemployment rate was on the rise.

While there are splits in the views, the majority of the people are expecting a 25 basis point cut, with more cuts expected in the next few months. Moreover, the Trafalgar Group poll conducted in North Carolina between August 6-8, 2024, reveals that former President Donald Trump is ahead of Vice President Kamala Harris in a hypothetical general election.

In the poll, Trump secured 48.9% vote while Harris got 45.2% vote. Robert Kennedy Jr. received 3.2% of the votes, while the rest of the votes were cast for other candidates or were from undecided voters. This poll shows the emphasis of voters on the US inflation as a primary concern and Trump as a candidate who would do the job at handling the economic problems in the country.

The post US Inflation: Trump Vows To Tackle Inflation Amid Fed’s 50 Bps Rate Cut Odds appeared first on CoinGape.

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Filed under: News - @ August 10, 2024 11:24 pm