Trump: 'Inflation will resolve itself'

JH Kim

Summary

It reported that President Trump dismissed concerns about rising prices, saying inflation will resolve itself.
It reported that Trump's remarks are drawing investors' attention in connection with recent Federal Reserve (Fed) interest rate policy and calls for monetary easing.
It reported that markets are observing that the remarks could act as political pressure on the selection of the next Fed chair and the direction of monetary policy.

President Donald Trump expressed an optimistic view on the inflation outlook.

On the 23rd (local time), according to economic news channel Walter Bloomberg, President Trump said, "Inflation will resolve itself," dismissing concerns about rising prices.

Trump's remarks have attracted attention in connection with the Federal Reserve (Fed)'s recent interest rate policy. He has repeatedly demanded monetary easing, saying the Fed has been behind in cutting interest rates.

U.S. inflation has recently shown a slowing trend, but the Fed is still maintaining a cautious policy stance to achieve the target of 2%. Some Fed officials maintain the view that price pressures have not been completely resolved.

Markets do not rule out the possibility that Trump's remarks could lead to political pressure on the selection of the next Fed chair and the future direction of monetary policy.

Trump has publicly stated that he prefers candidates for the next Fed chair who agree with his policy stance.