US President Trump Praises Core Inflation Rate Decline and GDP Growth

Summary

U.S. President Trump praised the decline in core inflation and recent GDP growth.USHK News This is part of a consistent pattern of commentary where he argues that a strong economy and rising markets should be met with lower interest rates from the Federal Reserve, not hikes.Wallstreetcn+ 2 He has criticized the market’s ‘good news is bad news’ logic and warned that any future Fed Chair nominee must agree with his view.Stheadline+ 2 His administration believes its policies have fostered non-inflationary growth and that the Fed should cut rates.JIN10 Trump has explicitly stated that low inflation data is a reason for Fed Chair Powell to lower rates.Sina Finance

Impact Analysis

This is more than just Trump taking a victory lap; it’s a sustained campaign to fundamentally alter the Fed’s reaction function. He’s explicitly trying to break the market’s “good news is bad news” logic by demanding rate cuts precisely when the economy is strong.Wallstreetcn+ 2 He’s not just suggesting it; he’s making it a litmus test for the next Fed Chair, openly threatening the institution’s independence.Stheadline

The signal is that the ‘Trump Put’ is evolving into a core policy objective. He wants the Fed to be an engine for asset price growth, dismissing traditional inflation fears.香港01 While this may provide a short-term tailwind for equities, it significantly raises the risk of a major policy error and de-anchored inflation expectations down the road. The play here is to stay long risk assets, as the political pressure for lower rates is immense, but hedge the inevitable long-term inflation consequences with commodities or TIPS. He’s trying to remove the punch bowl from the Fed’s cabinet entirely.