After the US September CPI data, Trump fiercely criticized the Federal Reserve: a 50 basis point rate cut is "too much too soon"

The U.S. inflation in September rose higher than expected, prompting Trump and his allies to quickly seize on this "handle" and fiercely criticize Federal Reserve Chairman Powell.

Data released on Thursday showed that the U.S. CPI rose by 2.4% year-on-year in September, slightly slowing down from the 2.5% increase in August, exceeding the expected 2.3%; on a month-on-month basis, it rose by 0.2%, also surpassing the expected 0.1%. The core CPI rose by 3.3% year-on-year, exceeding expectations and the previous value of 3.2%, indicating that the U.S. inflation cooling process is being hindered.

In the afternoon of the same day, Trump made the following statement during an appearance at the Detroit Economic Club:

"In fact, the Fed cut rates a bit too fast. The rate cut was too large, as everyone knows, this is a political move they are trying to make before the election."

This is also the most direct criticism Trump has made of Powell in several months. Previously, Trump's reaction to the 50 basis point rate cut in September was mostly about blaming the economy, rather than directly criticizing the Fed. Trump further stated, "Inflation has started to rise," and blamed high interest rates for "truly killing the American dream for young people."

At the same time, the super PAC supporting Trump, "Make America Great Again," also issued a statement on Thursday stating that the inflation data may be "part of the Fed's most terrifying nightmare."

However, Democrats, including the Biden-Harris administration, chose to focus on annual data, with National Economic Council Director Lael Brainard stating:

"The inflation rate has fallen to 2.4%, on par with pre-pandemic levels. We are making progress."

Meanwhile, Thursday's inflation data seems to provide new impetus for hawkish central bank officials, who advocate for a more gradual rate cut pace in the coming months.

Some analysts believe that some initial reactions indicate that no matter what Trump says, it is unlikely to change the rate cut strategy. Max Kettner, Chief Multi-Asset Strategist at HSBC, said in a Yahoo Finance video interview that the 25 basis point rate cut at the last two meetings this year is "almost a done deal."

It is worth noting that earlier this year, Trump bluntly stated that rate cuts were "something they shouldn't be doing." When the rate cut finally arrived, Trump's initial reaction was to focus on the economy, stating a few hours after the September rate cut:

" If they are not playing politics, cutting rates by so much shows that the economic situation is very bad."