Trump says Fed should lower rates by 'one full point'
June 11 (Reuters) - U.S. President Donald Trump on Wednesday reiterated his view that the Federal Reserve should cut interest rates by one percentage point, saying the latest inflation figures were "great."
"CPI just out. Great numbers! Fed should lower one full point. Would pay much less interest on debt coming due. So important!!!," Trump wrote on Truth Social in all capital letters.
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NBC News
36 minutes ago
- NBC News
Here are the three reasons why tariffs have yet to drive inflation higher
Despite widespread fears to the contrary, President Donald Trump 's tariffs have yet to show up in any of the traditional data points measuring inflation. In fact, separate readings this week on consumer and producer prices were downright benign, as indexes from the Bureau of Labor Statistics showed that prices rose just 0.1% in May. The inflation scare is over, then, right? To the contrary, the months ahead are still expected to show price increases driven by Trump's desire to ensure the U.S. gets a fair shake with its global trading partners. So far, though, the duties have not driven prices up, save for a few areas that are particularly sensitive to higher import costs. At least three factors have conspired so far to keep inflation in check: Companies hoarding imported goods ahead of the April 2 tariff announcement. The time it takes for the charges to make their way into the real economy. The lack of pricing power companies face as consumers tighten belts. 'We believe the limited impact from tariffs in May is a reflection of pre-tariff stockpiling, as well as a lagged pass-through of tariffs into import prices,' Aichi Amemiya, senior economist at Nomura, said in a note. 'We maintain our view that the impact of tariffs will likely materialize in the coming months.' This week's data showed isolated evidence of tariff pressures. Canned fruits and vegetables, which are often imported, saw prices rise 1.9% for the month. Roasted coffee was up 1.2% and tobacco increased 0.8%. Durable goods, or long-lasting items such as major appliances (up 4.3%) and computers and related items (1.1%), also saw increases. 'This gain in appliance prices mirrors what happened during the 2018-20 round of import taxes, when the cost of imported washing machines surged,' Joseph Brusuelas, chief economist at RSM, said in his daily market note. One of the biggest tests, though, on whether the price increases will prove durable, as many economists fear, or as temporary, the prism through which they're typically viewed, could largely depend on consumers, who drive nearly 70% of all economic activity. The Federal Reserve's periodic report on economic activity issued earlier this month indicated a likelihood of price increases ahead, while noting that some companies were hesitant to pass through higher costs. 'We have been of the position for a long time that tariffs would not be inflationary and they were more likely to cause economic weakness and ultimately deflation,' said Luke Tilley, chief economist at Wilmington Trust. 'There's a lot of consumer weakness.' Indeed, that's largely what happened during the damaging Smoot-Hawley tariffs in 1930, which many economists believe helped trigger the Great Depression. Tilley said he sees signs that consumers already are cutting back on vacations and recreation, a possible indication that companies may not have as much pricing power as they did when inflation started to surge in 2021. Fed officials, though, remain on the sidelines as they wait over the summer to see how tariffs do impact prices. Markets largely expect the Fed to wait until September to resume lowering interest rates, even though inflation is waning and the employment picture is showing signs of cracks. 'This time around, if inflation proves to be transitory, then the Federal Reserve may cut its policy rate later this year,' Brusuelas said. 'But if consumers push their own inflation expectations higher because of short-term dislocations in the price of food at home or other goods, then it's going to be some time before the Fed cuts rates.'
BBC News
41 minutes ago
- BBC News
Sen Alex Padilla dragged out of Noem immigration briefing in LA
Democratic US Senator Alex Padilla has been forcibly removed from a news conference held by Homeland Security Secretary Kristi Noem in Los was offering the latest figures on immigration enforcement in the area, which has led to nearly a week of protests in the city, to members of the news media when Sen Padilla interrupted and started shouting a removed from the room, the California senator was removal caused condemnation on both sides of the aisle, with fellow senators calling the arrest shocking and a "sickening disgrace" and the Trump administration dubbing it "disrespectful political theatre". "I'm Senator Alex Padilla," he said as he was confronted by authorities. "I have questions for the secretary!" Noem, who was speaking about immigration and the protests in LA, continued addressing reporters and law enforcement officers while the senator was ejected from the office said he was "forced to the ground and handcuffed" by federal agents when trying to ask the secretary a question, and added that he was not currently being detained. The Department of Homeland Security said Padilla had engaged in "disrespectful political theatre" and that Noem met with the senator after the news Mayor Karen Bass called the incident "absolutely abhorrent and outrageous", adding that the Trump administration's "violent attacks on our city must end". Padilla told reporters that he was already in the federal building for a previously scheduled meeting. He said he stopped by Noem's news briefing because he and his colleagues have received "little to no information in response" to several immigration-related the son of Mexican immigrants, is the most senior Democrat on the Senate's Border Security and Immigration subcommittee."I came to the press conference to hear what she had to say, to see if I could learn any new additional information," he said. "If this is how the Department of Homeland Security responds to a senator with a question, you can only imagine what they're doing to farm workers, to cooks, to day labourers out in the Los Angeles community and throughout California and throughout the country."He urged Americans across the country to "continue peacefully protesting" the Trump administration and its DHS in a statement said Padilla didn't identify himself and was not wearing the Senator's pin on his clothing so officers thought he was an attacker. Video footage of the incident shows Padilla saying he was he was a senator as he was being pushed outside the room. California's Governor Gavin Newsom called on Republican congressional leadership to condemn the detaining of Padilla. "If they can handcuff a U.S. Senator for asking a question, imagine what they will do to you," Newsom wrote on social the White House accused the California senator of storming the press conference, and said he "yelled and lunged toward Secretary Noem". "Padilla didn't want answers; he wanted attention," Abigail Jackson, White House spokesperson said. "Padilla embarrassed himself and his constituents with this immature, theater-kid stunt – but it's telling that Democrats are more riled up about Padilla than they are about the violent riots and assaults on law enforcement in LA."Former vice-president and Trump opponent, Kamala Harris also criticised the move and said the California senator was trying to get answers for his constituents about the ongoing immigration raids in the state. "United States Senator Alex Padilla was representing the millions of Californians who are demanding answers to this Administration's actions in Southern California," she said on Twitter. "This is a shameful and stunning abuse of power."
Reuters
an hour ago
- Reuters
US tells Israel it won't take part in any Israeli strike on Iran's nuclear facilities, Axios reports
WASHINGTON, June 12 (Reuters) - President Donald Trump's administration told the Israeli government the U.S. will not be directly involved in any Israeli military strike against Iran's nuclear facilities, Axios reported on Thursday, citing two U.S. sources and an Israeli source familiar with those discussions.
