The Wall Street Journal harshly criticized: Inflation has risen for three consecutive months, and Trump's initiation of a tariff war and calling for interest rate cuts is simply chaotic.

The inflationary pressure in the United States continues to rise, and the consumer price index (CPI) rose for the third consecutive month in January. However, President Trump still urges the Federal Reserve (Fed) to cut interest rates. The Wall Street Journal criticized that Trump's monetary policy advocacy may exacerbate inflation and bring greater risks to the U.S. economy. If the Fed cuts interest rates prematurely, it may let prices get out of control again, affecting voters' real purchasing power. Despite the continuous rise in inflationary pressure in the United States, President Trump once again urged the Fed to cut interest rates yesterday. The editorial of the Wall Street Journal criticized that Trump's understanding of monetary policy is fundamentally flawed. If the Fed cuts interest rates at this time, it may further heat up inflation, even returning to the high point of the Biden administration. According to the latest data from the U.S. Department of Labor, the consumer price index (CPI) increased by 0.5% in January, with an annual increase of 3%, while the core CPI (excluding food and energy) rose by 0.4%, accumulating a 3.3% rise over the past 12 months. This is the third consecutive month of inflation climbing, and U.S. prices have not cooled as fast as the market expected. The market reacted immediately, with the 10-year U.S. Treasury Intrerest Rate jumping from 4.53% to 4.63%, reflecting investors' concerns about inflation. In the face of such an economic environment, the probability of the Fed cutting interest rates in the short term has plummeted, and some analysts even believe that there will only be one interest rate cut within 2024, which may be postponed until October. The contradiction in Trump's economics: high tariffs + low Intrerest Rate = high inflation? However, Trump's interpretation is completely different. He posted on social media, stating that Intrerest Rate should drop, which complements the upcoming tariffs! This statement has raised market concerns because high tariffs usually raise the prices of imported goods, bringing greater inflationary pressure, while a low Intrerest Rate may help prices rise. If both occur at the same time, U.S. inflation may deteriorate further. As a political figure from a real estate development background, Trump has always favored a low Intrerest Rate and a weak U.S. dollar, as this can help borrowing and investment. However, the current economic environment is very different from when he took office in 2017, and the Fed's primary task now is to suppress inflation, not stimulate economic growth. The Fed's attitude: will not be affected by political interference. Fed Chairman Powell clearly stated at a congressional hearing last night that Central Bank decisions will be based entirely on economic data, not political pressure. He emphasized: We will decide on Intrerest Rate policy based on economic conditions, not because of the demands of certain people. In fact, the Fed predicted last year that there might be two interest rate cuts this year, but as inflation rebounded, market expectations have been significantly revised, with the belief that there may only be one interest rate cut this year, or even none. Is the rise in inflation a boon or a risk for Trump's election? For Trump, the issue of inflation is a double-edged sword. He has continuously attacked the inflation performance of the Biden administration during the election campaign, emphasizing the decline in people's purchasing power and the soaring cost of living. But if inflation worsens again after he is elected, it will directly affect voters' trust in him. Over the past three months, real average income in the United States has remained almost unchanged. If prices continue to rise and wages do not keep up, it will once again become the most concerning issue for voters. Trump's economic policies may bring greater risks and even become his biggest challenge after taking office in 2025.