Stocks sell off as investors see Trump's inflation 'pipeline' forcing the Fed to hold off on interest rate cuts

(Credit: Tasos Katopodis—Getty Images)

• Inflation is up, stocks are down, and more tariffs are on their way. Trump wants interest rates to come down but the direction of travel is making it less likely that the Fed will deliver the cuts he wants. It’s not clear whether Trump can extract himself from the policy cycle he has created.

President Trump was unfazed by the rise in inflation to 2.7%, reported yesterday, and, as usual, he used social media to insist that the U.S. Federal Reserve lower interest rates. “Consumer Prices LOW. Bring down the Fed Rate, NOW!!!” he said. He then added: “Fed should cut Rates by 3 Points. Very Low Inflation. One Trillion Dollars a year would be saved!!!”