Vance joins Trump in bashing Powell, says Fed committing ‘monetary malpractice’ by not cutting rates
President Donald Trump and Vice President JD Vance are teaming up to put pressure on the Federal Reserve to lower interest rates. Vance took to social media to echo Trump’s calls for the central bank to ease monetary policy in response to the latest inflation data, which showed no significant impact from tariffs.
“The president has been advocating for rate cuts, and it’s clear that the Fed’s refusal to act is monetary malpractice,” Vance stated in his post. The Bureau of Labor Statistics reported a minimal increase in the consumer price index, with annual inflation levels slightly above the Fed’s target of 2%.
Trump has been urging Fed Chair Jerome Powell and the FOMC to cut rates by a full percentage point from the current target range of 4.25%-4.5%. However, market expectations suggest that a rate cut is unlikely at the upcoming meeting, with traders anticipating a move in September.
Administration officials are pointing to the easing inflation data and a slowing labor market as reasons to lower rates. Elyse Ausenbaugh, head of investment strategy at J.P. Morgan Wealth Management, believes that the combination of factors warrants another rate cut, but acknowledges the Fed’s cautious approach given the ongoing uncertainty.
As the FOMC prepares to make its decision on interest rates, the pressure from Trump and Vance adds to the already complex economic landscape. The markets will be closely watching for any signals from the central bank regarding its monetary policy stance in the face of mounting political pressure.
