Trump Administration Eases Pressure on Fed to Cut Rates as Inflation Tops 4%
The Trump administration is stepping back from immediate calls for the Federal Reserve to lower interest rates, following the release of May data showing U.S. inflation has climbed to its highest level in three years. A White House official told CNBC that President Donald Trump has “confidence and faith” in new Federal Reserve Chairman Kevin Warsh, marking a shift from recent comments where Trump and several economic advisors explicitly demanded near-term rate cuts.
The policy pivot aligns with the Commerce Department’s Personal Consumption Expenditures price index, which rose to 4.1% year over year in May, up from 3.8% in April and well above the Fed’s 2% target. Core PCE inflation, which strips out volatile food and energy prices, also accelerated to 3.4%, its fastest pace since October 2023. The reading came alongside a stronger-than-expected update on the broader economy, as first-quarter gross domestic product was revised upward to a 2.1% annualized growth rate.
From the sources (25 posts)
@firstsquawkSPAIN PPI (M/M) MAY: 1.0% (PREV 1.7%; PREV R 2.0%)
@financialjuiceCHICAGO NATIONAL ACTIVITY INDEX ACTUAL -0.1 (FORECAST 0.15, PREVIOUS 0.14) $MACRO
@deitaoneUS JOBLESS CLAIMS -12K TO 215K IN JUN-20 WK; SURVEY 223K US JUN-13 WEEK CONTINUING CLAIMS +21K TO 1,821,000 US JUN-13 WEEK JOBLESS CLAIMS REVISED TO 227K
@firstsquawkUS INITIAL JOBLESS CLAIMS ACTUAL: 215K VS 226K PREVIOUS; EST 225K
@financialjuice🔴 US INITIAL JOBLESS CLAIMS ACTUAL 215K (FORECAST 225K, PREVIOUS 226K) $MACRO
@firstsquawkUS GDP (QOQ) (Q1) ACTUAL: 2.1% VS 1.6% PREVIOUS; EST 1.6%
@financialjuiceUS CONTINUED JOBLESS CLAIMS ACTUAL 1.821M (FORECAST 1.8015M, PREVIOUS 1.810M) $MACRO
@cryptoroverBREAKING: 🇺🇸 US PCE DATA PCE (YoY): ACTUAL: 4.1% vs. EXPECTED: 4.1% CORE PCE (YoY): ACTUAL: 3.4% vs. EXPECTED: 3.4%
@financialjuice🔴 US DURABLE GOODS ACTUAL -4.5% (FORECAST -5%, PREVIOUS 8.0%) $MACRO
@financialjuiceUS CORE DURABLE GOODS ACTUAL 1.3% (FORECAST 0.6%, PREVIOUS 1.1%) $MACRO
@bulltheoryioBREAKING: PCE Price Index came in at 4.1% Expectations: 4.1% The highest reading since April 2023.
@financialjuiceUS PERSONAL INCOME MOM ACTUAL 0.7% (FORECAST 0.4%, PREVIOUS 0.0%) $MACRO
@financialjuice🔴 US GDP QOQ FINAL ACTUAL 2.1% (FORECAST 1.6%, PREVIOUS 1.6%) $MACRO
@zerohedgePCE 0.4% MoM, Exp. 0.5% PCE Core 0.3% MoM, Exp. 0.3% PCE 4.1% YoY, Exp. 4.1% PCE Core 3.4% YoY, Exp. 3.4%
@maxcrypto🚨 BREAKING 🚨 🇺🇸 US PCE came in at 4.1% Expectations: 4.1%
@financialjuiceUS GDP DEFLATOR SA FINAL ACTUAL 3.6% (FORECAST -, PREVIOUS 3.5%) $MACRO
@deitaone*US MAY PCE PRICE INDEX RISES 0.4% M/M; EST. +0.5% *US MAY PCE PRICE INDEX RISES 4.1% Y/Y; EST. +4.1% *US MAY CORE PCE PRICE INDEX RISES 0.3% M/M; EST. +0.3% *US MAY CORE PCE PRICE INDEX RISES 3.4% Y/Y; EST. +3.4%
@firstsquawkUS CORE PCE PRICE INDEX (MOM) (MAY) ACTUAL: 0.3% VS 0.2% PREVIOUS; EST 0.3%
@zerohedgePersonal Income 0.7%, Exp. 0.4% Personal Spending 0.6%, Exp. 0.4% Real Personal Spending 0.3%, Exp. 0.2%
@firstsquawkUS CORE PCE PRICE INDEX (YOY) (MAY) ACTUAL: 3.4% VS 3.3% PREVIOUS; EST 3.4%
@firstsquawkUS PERSONAL SPENDING (MOM) (MAY) ACTUAL: 0.7% VS 0.5% PREVIOUS; EST 0.6%
@firstsquawkUS DURABLE GOODS ORDERS (MOM) (MAY) ACTUAL: -4.5% VS 8.0% PREVIOUS; EST -5.0%
@deitaoneUS 1Q FINAL GDP +2.1% VS PRELIM GDP +1.6%
@stockmktnewz215K people filed for unemployment this past week in the United States 🇺🇸 below expectations 225K
@zerohedgeGDP Q2 second revision 2.1%, Exp. 1.6%, Last 1.6%