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The encouraging July inflation report has emboldened President Trump to demand rate cuts from the Federal Reserve. On Tuesday, he threatened a “major lawsuit” against Fed chair Jerome Powell, not only because he has refused to cut interest rates, but also, according to the President, “because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings.”
He’s playing the wrong game. You don’t pressure the Fed chair; you end the Fed. The Fed is a financial cartel. You can’t beat them at their own rigged game. How many times must we repeat this?
Inflation in July was up just 0.2% from a year ago. Food prices held steady. Energy prices fell 1.1%. Did tariffs bump consumer prices? Marginally. Household furnishings and supplies ticked up 0.7% after a 1% rise in June. Apparel prices edged up 0.1%. Core commodity prices? A mere 0.2%.
These numbers sent the Nasdaq and the S&P to “record highs” on Wednesday, which the White House victory lapped on X.