US President Donald Trump said inflation has been “totally neutralized,” pointing to falling prices in several everyday items and stronger economic signals.
Speaking at the White House, Trump criticized Democrats for repeatedly using the word “affordability,” saying they were responsible for the inflation problem in the first place. He claimed prices are now coming down and could even fall further.
Related: Bitcoin and Altcoins Enter High-Risk Week as Delayed US Jobs Data Meets BoJ Hike Fears
However, official data still shows inflation running just under 3%. The Consumer Price Index rose 3% year over year, while the Personal Consumption Expenditures index increased 2.8%, both still above the Federal Reserve’s 2% target.
Trump Wants a Say in Interest Rates
Trump also said he wants to be consulted on future interest rate decisions, calling it common practice in earlier decades. Traditionally, US presidents do not take part in Federal Reserve policy decisions, as the central bank operates independently.
Trump confirmed he has narrowed his search for the next Fed chair to two candidates: former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett.
Polymarket shows Kevin Hassett as the frontrunnejr to become the next Federal Reserve chair, with implied odds around 52%, ahead of former Fed Governor Kevin Warsh, who stands near 40%.
Fed Independence Still Stands
Kevin Hassett, one of Trump’s top choices, later clarified that if he were chosen as Fed chair, the president’s views would not influence rate decisions.
On Face the Nation with Margaret Brennan, when asked whether the president’s voice would have equal weight to voting members, Kevin said, “No. He would have no weight. It’s just his opinion matters if it’s good, if it’s based on data.”
Hassett said the Fed’s job is to remain independent and that interest rates are decided by committee votes based on economic data. While the Fed chair may hear opinions from many sources, including the president, those views carry no voting power.
How will Crypto React?
Analysts say several economic factors are influencing market expectations. These include a focus on pushing down the 10-year bond yield, signs that quantitative tightening could end on December 1, and recent PMI data showing economic activity is contracting at 48.2.
Together, these conditions are seen as supportive for risk assets. While crypto markets usually react later than stocks and bonds, they often see bigger price moves once momentum starts building.
Related: Hong Kong Unveils 10-Year Plan for RWA Tokenization and Digital Markets
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.