Despite Federal Reserve signals that further rate cuts are unlikely, President-elect Trump insists that interest rates remain too high, stifling growth. Trump’s proposed policies—hardline tariffs, mass deportations, and broad deregulation—have sparked inflation fears among Fed officials. The Fed’s recent meeting minutes noted “increased upside risks” to inflation, citing these policy shifts as key drivers.

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Trump has criticized the Fed’s approach, arguing that aggressive rate reductions are essential to boost business investment and counter global economic pressures. As tensions mount between the incoming administration and the central bank, markets are bracing for policy uncertainty and potential inflationary consequences and recent price movements are certainly showing this hesitancy.

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