Donald Trump and Economic Governance

Economists estimate the Labor Department’s December consumer price index, due this week, will show inflation running at about 2.6% year‑over‑year and 0.3% month‑over‑month, with similarly sized gains in the Fed’s preferred core measure, suggesting price pressures remain above the central bank’s 2% goal. The article explains that the six‑week federal shutdown last fall disrupted collection of price and rent data, likely biasing November inflation lower and making December’s rebound harder to predict as normal sampling resumes. It notes that despite the drop from the 9.1% June 2022 peak, prices for necessities like groceries are roughly 25% higher than before the pandemic, fueling persistent public anger over the economy even as the Fed debates whether to pause further rate cuts. The piece also points to political pressure on the Fed, with President Trump attacking Chair Jerome Powell for not cutting rates faster and the Justice Department issuing subpoenas tied to Powell’s June testimony about a $2.5 billion headquarters renovation, raising concerns about the central bank’s future independence in managing inflation.