White House Officials Pressure Fed to Consider Rate Cuts Amid Cooling US Inflation

The US inflation data for June showed a significant cooling trend, as the Personal Consumption Expenditures (PCE) price index fell 0.1% month-over-month, marking its first decline in six years since 2020.

This shift prompted senior White House officials to call on the Federal Reserve to consider lowering interest rates, with National Economic Council Director Kevin Hassett stating that the latest inflation data makes the job of Fed Chair a 'little easier.'

Hassett emphasized the administration's confidence in Warsh's ability to make decisions based on economic data and noted that artificial intelligence is not creating inflationary pressure for the US.

The annual PCE price index rate fell to 3.7% in June from 4.1% in the prior month, with the core PCE rate declining to 3.3% from 3.4%, exceeding market expectations.