How an inflation uptick and Trump’s pressure complicate the Fed’s interest rate decision

William Brangham:

Welcome to the “News Hour.”

New data show inflation picked up last month, and analysts believe the prices of many goods increased in part because of President Trump’s tariffs. Inflation rose 2.7 percent compared to a year ago and prices increased broadly by three-tenths of a percent last month.

While that’s not a huge hike, it is the largest monthly increase since January and it will play into decisions by the Federal Reserve about when and whether to finally cut interest rates. This comes as the president and his team have ramped up their pressure campaign on Federal Reserve Chair Jerome Powell to lower those rates.

They have also openly speculated about firing him. Earlier today, the president was asked about Powell and when the two had last spoken.

Donald Trump, President of the United States: I told him he’s doing a very bad job. He’s way late. That’s why I call him too late. Jerome Powell is too late. He’s way late. Interest rates should be coming down. We have a very, very successful country. We should have the lowest interest rate anywhere in the world. And we don’t. Jerome Powell has done a terrible job.

And, frankly, I don’t think he could do a worse job. He’s called everything wrong.