Trump Criticizes Fed Chair Over Rate Hold Despite Falling Inflation

President Donald Trump renewed his criticism of the Federal Reserve, accusing it of being too slow to lower interest rates despite April's consumer price index (CPI) showing a slight deceleration in inflation to 2.3% year-over-year, the slowest pace since 2021. He emphasized that prices for gasoline, energy, groceries, and other goods are falling, urging the Fed to reduce rates like Europe and China have done, directly challenging Fed Chair Jerome Powell. However, the Fed maintained its interest rates at 4.25%-4.50%, citing ongoing inflationary pressures from tariffs and labor market uncertainties, with expectations that inflation may rise again as tariff impacts fully materialize. Economists note that April’s inflation data is not yet conclusive because many imported goods were shipped before tariffs took effect, and some companies have absorbed increased costs to maintain demand. While core inflation remained steady, declines in grocery prices, particularly eggs, offered some relief to consumers amid concerns about tariff-driven price increases. Trump's demands contrast with the Fed's cautious approach, highlighting tensions between the administration's economic stance and the central bank's independent policy decisions.