VP Vance Criticizes Fed for Refusing Rate Cuts After Soft Inflation

President Donald Trump and Vice President JD Vance have jointly criticized the Federal Reserve for not reducing interest rates, labeling the decision as "monetary malpractice." Following the release of May's Consumer Price Index data, which showed inflation rising modestly by 0.1% both monthly and in core measures, Vance emphasized that the Fed's refusal to ease monetary policy is unjustified given the current inflation readings are above but near the Fed's 2% target. Despite Trump's repeated calls for a full percentage point cut from the Fed funds rate currently at 4.25%-4.5%, the Federal Open Market Committee is expected to maintain rates at their upcoming meeting, with markets anticipating a possible cut only by September. Administration officials argue that the easing inflation figures and a moderating labor market support the case for rate cuts, but the Fed remains cautious about the uncertain longer-term effects of tariffs on prices. Vance's comments reflect the White House's ongoing pressure on Fed Chair Jerome Powell amidst concerns over inflation and economic policy.