"Inflation has risen in three of the last four months and is slightly higher than it was a year ago, when it helped sink then-Vice President Kamala Harris' presidential campaign. Yet you wouldn't know it from listening to President Donald Trump or even some of the inflation fighters at the Federal Reserve. Trump told the United Nations General Assembly late last month: "Grocery prices are down, mortgage rates are down, and inflation has been defeated.""
"Yet dismissing or even downplaying inflation while it is still above the Fed's target of 2% poses big risks for the White House and the Federal Reserve. For the Trump administration, it could find itself on the wrong side of a potent issue: Surveys show that many Americans still see high prices as a major burden on their finances. The Fed may be taking an even bigger gamble:"
Inflation rose in three of the last four months and is slightly higher than a year ago, a period that helped sink then-Vice President Kamala Harris' presidential campaign. President Donald Trump asserted that grocery prices and mortgage rates are down and that inflation has been defeated. Federal Reserve Chair Jerome Powell said inflation has come down substantially from post-pandemic highs and that upside risks have diminished. The Fed cut its key interest rate for the first time this year. Downplaying inflation while it remains above the Fed's 2% target risks political fallout and could undermine the Fed's credibility. Surveys show many Americans still feel high prices burden their finances.
Read at Fast Company
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