President Donald Trump is calling on Federal Reserve Bank Chairman Jerome Powell to lower interest rates immediately following the release of new August inflation data Wednesday.
“Just out: No Inflation!!! ‘Too Late’ must lower the RATE, BIG, right now. Powell is a total disaster, who doesn’t have a clue!!!” the president posted on Truth Social.
🚨From @WhiteHouse
“Just out. No inflation!!!” https://t.co/30myuoBeMJ
— Fan Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) September 10, 2025
CNBC reported, “The producer price index, which measures input costs across a broad array of goods and services, dropped 0.1% for the month, after a downwardly revised 0.7% increase in July and well off the Dow Jones estimate for a 0.3% rise. On a 12-month basis, the headline PPI saw a 2.6% gain.”
“The core PPI, which excludes volatile food and energy prices, also was off 0.1% after being expected to climb 0.3% as well. Excluding food, energy and trade, the PPI posted a 0.3% gain and was up 2.8% from a year ago,” the news outlet added.
CNBC host Becky Quick responded to the report, saying, “That’s a real shocker … the idea that inflation is so much weaker than anticipated.”
CNBC’s Becky Quick on wholesale inflation declining in August: “That’s a real shocker… the idea that inflation is so much weaker than anticipated.” 🔥 pic.twitter.com/RbngmuoL8o
— Rapid Response 47 (@RapidResponse47) September 10, 2025
Additionally, the network’s Rick Santelli said, “I’m surprised. Real progress here: 2.6 percent on year-over-year headline. We were expecting 3.3 [percent].”
“It underscores, whether it was tariff-driven or not, those little blips [in inflation increases earlier this year] seem to be moving back into the sunset,” he added.
🚨 JUST IN: CNBC is shocked at producer price inflation actually declining for the month. President Trump has defied all expert expectations on tariffs.
“Wholesale inflation, expected to be +0.3%, down -0.1%. Wow! First negative number since April.”
“I’m SURPRISED! Real… pic.twitter.com/37PmibQxuG
— Eric Daugherty (@EricLDaugh) September 10, 2025
Allianz Chief Economic Advisor Mohamed El-Erian argued, based on the reports, that consumers are picking up the smallest percentage of the tab under Trump’s tariff policies.
“There’s the exporter, there’s the importer, and there’s the consumer, and so far the consumer is carrying the least of the burden,” he said.
The economist contended that companies are examining prices, product by product, and deciding what the consumer can bear.
“They’re finding out they cannot pass through as much of the price increase as they want,” El-Erian said.
🚨 BREAKING: They just admitted President Trump was right all along on tariffs.
“There’s the exporter, there’s the importer, and there’s the consumer. So far? The consumer is carrying the LEAST of the [tariff] burden.”
“They’re finding out they cannot pass through as much of… pic.twitter.com/ux1aVJ2LqN
— Eric Daugherty (@EricLDaugh) September 10, 2025
He further observed, “What we’re learning is that the final impact [of tariffs] on the consumer is much less than people expected.”
El-Erian concluded, “This [inflation] number now, if the Fed is truly data dependent, the question should be, ‘Why not 50 [basis points]?’”
The current Federal Reserve target rate is 4.25 to 4.5 percent. A 50 basis point cut would bring it down to 3.75 to 4 percent.
Cutting interest rates makes both mortgage rates and consumer credit rates less expensive, which can stimulate economic growth.
In June, Trump published a public note to Powell written on a chart of other nations’ interest rates around the world. Trump wrote, “Jerome, you are, as usual, ‘too late.’ You have cost the USA a fortune — and continue to do so.” The U.S. rate was among the highest in the industrialized world.
“You should lower the rate — by a lot! Hundreds of billions of dollars being lost! No inflation,” he added.
Donald J. Trump Truth Social 06.30.25 01:09 PM EST
Jerome “Too Late” Powell, and his entire Board, should be ashamed of themselves for allowing this to happen to the United States. They have one of the easiest, yet most prestigious, jobs in America, and they have FAILED — And… pic.twitter.com/hXKHbZ7R9l
— Fan Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) June 30, 2025
The Federal Reserve Board meets next week and is expected to vote to lower the interest rate.
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