President Donald Trump says there’s “no inflation,” but the latest data shows the battle against rising prices is still going on, and they’re rising faster than the Federal Reserve would like.
In a post on Truth Social on Friday morning, the president pointed to inflation, gas prices, and mortgage rates all being down, and reiterated calls for the Fed to cut interest rates.
“Gasoline just broke $1.98 a Gallon, lowest in years, groceries (and eggs!) down, energy down, mortgage rates down, employment strong, and much more good news, as Billions of Dollars pour in from Tariffs,” Trump wrote, emphasizing that the economy was only in a “TRANSITION STAGE” after he rolled out his slate of tariffs last month. “Consumers have been waiting for years to see pricing come down. NO INFLATION, THE FED SHOULD LOWER ITS RATE!!!,” he added.
Trump’s comments came shortly after the April jobs report, which showed that hiring was better than expected last month. His post nodded to cooling prices, but consumer prices have still been rising, and were up 2.4% year-over-year in March. That’s above the Fed’s 2% target.
Inflation has been cooling steadily since 2022. However, the rate is still higher than it was during most of Trump’s first term, when average annual compound inflation was about 1.8%.
But what about other stats rattled off in Trump’s post?
The president said gas prices are $1.98 per gallon, but the latest weekly data from the US Energy Information Administration show they clocked in at around $3.13 per gallon.
Mortgage rates, meanwhile, have in fact come down as Trump stated. The average 30-year fixed-rate mortgage was about 6.83% this week, compared to 7.08% a day after the inauguration.
Trump’s team did not immediately respond to Business Insider’s request for comment.
It isn’t the first time the president, who said he wants to lower Americans’ borrowing costs and has pressured the Fed to cut rates, has declared there’s practically no inflation in the US.
But Trump’s most recent comments are greatly toned down compared to his calls last month for Powell to be fired. Last month, Trump stated that he was looking at a way to boot Powell from his post before the end of his term in 2026. After markets balked at the prospect, Trump backed off, stating he had no intention of sacking the Fed chief.
Most investors don’t see the Fed cutting rates anytime soon, with inflation above target and the job market holding up well for now.
According to the CME FedWatch tool, markets see a near-100% chance the Fed will leave rates unchanged at its policy meeting next week. Meanwhile, investors see a 40% chance central bankers will trim rates by 25 basis points at the June meeting, down from 60% a month ago.
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