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Apr 10, 2019, 12:00 PM GMT
#InterestRate

The Core CPI Data in the US Disappoints; Adds Fuel to Trump's Critiques Over the FED's Interest Rate Policy

It has been a few days after the US President Donald Trump accused the FED, and more precisely Jerome Powell – the FED chairman who was appointed by Trump himself, of having increased the interest rates prematurely to the point where the monetary policy does not meet the economic circumstances.

The Core Consumer Price Index was expected to rise to 0.2% but instead it fell to the previous month's level of 0.1 %. The reduced inflation performance in the US can indeed be attributed to the FED's daring interest policy, which can be used by Trump's administration as a smokescreen for the Presidency's mistakes oversees and most notably his questionable protectionist stance on foreign imports from China (presently even on the verge of attacking Europe's powerhouse in commercial jet manufacturing – Airbus) , which have done little to improve the consumer spending in the national economy.

The US dollar index reacted to the worrisome inflation data by dropping to as low as 96.85 from the previous day's high of 97.09