Home Consumer Trump Declares Inflation “Defeated” Amid Persistent Price Pressures

Trump Declares Inflation “Defeated” Amid Persistent Price Pressures

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President Donald Trump recently declared that inflation in the United States has been “defeated,” citing recent Federal Reserve interest rate cuts as evidence of economic improvement. However, despite these claims, consumer prices remain elevated, with inflation at 2.9% in August 2025, surpassing the Federal Reserve’s 2% target.

The administration’s aggressive tariff policies, including the implementation of a two-tiered tariff system ranging from 10% to 50% on various imports, have contributed to increased costs for consumers. Items such as coffee, furniture, and appliances have seen price hikes, with coffee prices rising nearly 21% over the past year due to a combination of tariffs and climate-induced supply shortages.

Despite these inflationary pressures, the Federal Reserve has enacted a 0.25% interest rate cut, aiming to stimulate economic growth amid concerns over a weakening labor market. However, Fed officials, including Governor Michael Barr, have expressed caution, warning that the full impact of tariffs on inflation may not yet be fully realized. Barr projects that core inflation will exceed 3% by the end of 2025, with the overall inflation rate not returning to the Fed’s target until 2027.

Economists caution that the administration’s optimistic outlook may undermine public confidence in the Fed’s ability to manage inflation, potentially leading to an inflationary spiral if consumer and business expectations shift.

Faith Based Events

Sources:

ABC News

Reuters


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