Vice President Vance ripped the Federal Reserve and cited President Trump's criticism of the central bank after prices rose at a slower than expected rate in May.
In a Wednesday social media post shortly after the release of May inflation data, Vance accused the Fed of bungling its job to balance price growth and unemployment through interest rates.
"The president has been saying this for a while, but it's even more clear: the refusal by the Fed to cut rates is monetary malpractice," Vance posted on X.
The May consumer price index (CPI) report, released Wednesday by the Labor Department, showed prices rising 0.1 percent last month, slightly lower than Wall Street's anticipated 0.2-percent increase. The annual inflation rate came in at 2.4 percent, in line with expectations and slightly above the Fed's target of 2 percent.
Trump has insisted for months that the Fed should slash interest rates and add more fuel to the U.S. economy, with inflation down sharply from its peak during the Biden administration. The president argues the Fed should match rate cuts from other central banks, even though those countries have considerably weaker economies than the U.S. does.
Trump's fury with the Fed reignited last year as the central bank began cutting interest rates shortly before the 2024 election. The president accused Fed Chair Jerome Powell, a lifelong Republican, of attempting to sway the election toward the Democratic ticket.
Trump grew even angrier with the Fed after Powell and other officials indicated earlier this year that they would likely keep rates steady amid the uncertainty driven by the president's tariffs and the relative strength of the U.S. economy.
Fed officials still expect to cut interest rates at least twice this year, according to the bank's most recent projections from March. But even a slower-than-expected May inflation report may not be enough to accelerate those cuts.
"The Federal Reserve should be encouraged, but the incoming data doesn’t appreciably increase the odds that the central bank cuts rates before December, which is our baseline. The Fed will be reactionary and want to see how inflation does this summer when the tariffs hit inflation harder," wrote Ryan Sweet, chief U.S. economist at Oxford Economics in an analysis.
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