Trump Calls for Rate Cuts and Highlights Falling Prices
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The Impact of Bird Flu on Egg Prices
Trump has frequently criticized the previous administration for rising egg prices, which had surged due to a nationwide outbreak of avian flu, leading to the mass culling of poultry. The crisis had caused significant disruptions in supply, pushing prices higher.
Pressure on the Federal Reserve to Cut Rates
In his post, Trump also urged the Federal Reserve to “do the right thing and cut interest rates,” arguing that lower rates would benefit the economy.
However, the Fed recently decided to keep interest rates unchanged, forecasting that inflation will rise to 2.7% by the end of 2025, exceeding the 2% target. Additionally, the economic growth forecast for this year was revised downward to 1.7%, down from 2.8% last year.
Fed’s Stance on Inflation and Economic Growth
Fed Chair Jerome Powell has indicated that inflation pressures remain a concern and partly attributed rising inflation to tariffs imposed by the Trump administration. Powell emphasized that the Fed will remain patient before making any policy adjustments.
Market Reactions and Investor Sentiment
With ongoing discussions around interest rate policy, investors are closely watching economic data and the Fed’s next moves to assess their potential impact on financial markets.
