High gas prices may delay Fed rate cuts despite Trump pressure

According to NPR, consumer prices are rising faster than they have in years, with annual inflation reaching 3.8% in April, up from 3.5% in March. The increase is driven largely by gas prices, which are up about $1.40 from before the war began. The Federal Reserve, which watches the Commerce Department’s inflation yardstick closely, appears unlikely to lower interest rates soon despite President Trump pushing for cuts. Fed governor Chris Waller, previously eager to cut rates due to a weak job market, has changed his mind as the job market stabilizes and inflation becomes a growing concern. The economy grew more slowly in the first quarter than initially estimated, with revised GDP figures showing an annual rate of 1.6%, down from an earlier estimate of 2%. Treasury Secretary Scott Bessent described the economic conditions as short-term challenges, noting that unemployment remains low and tax refunds are up about 11% from a year ago. The Washington Post reported that the Treasury Department has been pressing the Bureau of Engraving and Printing to design a new $250 bill featuring President Trump’s likeness, though current law prohibits living persons on U.S. currency.

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Sources: NPR