On Wednesday morning Eastern Time, USA President Trump posted a comment on the social platform Truth Social, stating:

Interest rates should be lowered, which will complement the upcoming tariff policy!!! Let's rock, USA!!!

The aforementioned post did not specify whether he was referring to the Federal Reserve's short-term benchmark interest rate, the 10-year USA Treasury bond yield, mortgage loan rates, auto loan rates, or all the above rates.

Shortly after Trump made his comment, USA released the January CPI data, which showed that the inflation data exceeded expectations across the board. The year-on-year growth of January CPI rose to 3%; month-on-month growth was 0.5%, the largest increase since August 2023, accelerating for the seventh consecutive month; core CPI accelerated to 0.4%.

In response to the latest CPI data, Trump again posted, mentioning "BIDEN INFLATION UP", criticizing this higher-than-expected inflation report as "Biden inflation."

Trump's two comments on interest rates and inflation on Wednesday were about an hour apart.

Analysis indicates that Trump's action aims to avoid potential political dangers at the beginning of his second term. The CPI data from January includes 12 days during Trump's presidency. During last year's presidential campaign in the USA, Trump frequently highlighted inflation and cost of living issues during the Biden administration, while also focusing on immigration issues, which reflect the negative public perception of Biden's handling of economic matters.

Multiple parties responded.

Hassett, the Director of the National Economic Council at the USA White House, stated that regardless of the Federal Reserve's involvement, the USA's inflation problem will be resolved. Interest rates are expected to decline.

White House Press Secretary Karoline Leavitt told reporters in Washington Wednesday evening: "President Trump hopes that interest rates will decrease. I believe the situation is much worse than anyone expected because, unfortunately, the previous administration did not disclose the true economic condition."

Renowned Democratic Senator Warren stated in a statement, "President Trump promised to reduce costs for working families during his campaign, but today’s inflation data highlights his failure to fulfill that promise."

In response to Trump’s latest Post, well-known financial journalist Nick Timiraos, known as the "New Federal Reserve News Agency," stated:

Some of Trump's economic advisors recently expressed differing views, arguing that the Federal Reserve needs to fully control inflation before lowering interest rates.

The USA Treasury stated last week that "inflation needs to further ease to align with the Federal Reserve's targets."

Federal Reserve Chair Powell attended a hearing in the USA Congress this week. He stated on Tuesday that, given the economic resilience, the Federal Reserve does not need to rush to lower interest rates. Regarding the CPI data released on Wednesday, he mentioned that the 2% long-term inflation target is close but not yet achieved. He also noted that the Federal Reserve may adjust rates due to tariffs.

The market does not support Trump's latest call for interest rate cuts. After the CPI data was released, traders adjusted the timing of the next Fed rate cut from September this year to December. In comparison, prior to the CPI report, traders leaned towards having two rate cuts this year.

The Trump team's reference to the timeline for interest rate cuts.

A CNBC article points out that Trump's latest tweet reflects a shift in the White House's narrative on monetary policy:

• Shortly after taking office, Trump demanded an "immediate" interest rate cut, even though he does not have direct control over the Federal Reserve.

• A few days later, he stated that the Federal Reserve's decision to keep interest rates unchanged at the end of January was correct.

• A few days ago, the new USA Treasury Secretary Basent stated in a media interview that the Trump administration was more focused on the 10-year USA Treasury bond yield for lowering borrowing costs, rather than the Federal Reserve's short-term benchmark interest rate. When asked if Trump wanted to cut interest rates, Basent stated, "Both President Trump and I are focused on the 10-year USA Treasury bond, and he did not pressure the Federal Reserve to lower rates."

• However, Trump's comments on Wednesday indicate that he has returned to pressuring the Federal Reserve and calling for looser policies.

Editor/Jeffy