President Trump pressures Fed chief to cut rates after inflation data falls short of expectations

Data released by the U.S. Bureau of Labor Statistics on Tuesday showed that the Consumer Price Index (CPI) rose slightly by 0.3% on a monthly basis and by an annual rate of 2.7%.

The core inflation index (core CPI), which excludes volatile items such as food and energy, did slightly better, rising 0.2% monthly and 2.6% annually.

Both indicators missed expectations by about 0.1%.

US President Donald Trump’s reaction was swift.

He has been pressuring Fed Chairman Jerome Powell to lower interest rates for nearly a year and a half, and he believes today’s data gives him an additional excuse to push the Fed to take action.

Trump has recently reiterated his characterization of Powell, criticizing what he sees as his reluctance to cut interest rates in a timely manner. He then called for sharp cuts in interest rates, using sharp language to underscore his stance.

The statements come amid rising political tensions over recent steps taken by the U.S. Department of Justice that Powell reportedly believed were politically motivated by Trump, adding to the sensitivity of the situation and fueling market uncertainty.

On the Bitcoin side, the initial reaction was limited but notable.

Immediately after the CPI data was released, prices rose from under $92,000 to just over $92,500 before falling again.

Prices tried to rise again following Trump’s comments, suggesting the market is monitoring the impact of the possibility of rate cuts on riskier assets.

While Bitcoin has maintained a degree of stability compared to its geopolitically turbulent state, the current situation remains highly volatile and more severe swings are likely to occur in the coming days, especially amid the growing overlap between monetary policy, political pressure, and investor expectations.

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