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Why Trump's call for the Fed to cut interest rates may not help consumers

Associated Press News
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Trump has repeatedly urged the Federal Reserve to cut the short-term interest rate that the central bank controls.

But long-term rates on things like mortgages, auto loans, and credit cards are largely set by market forces.

Fears that Trump 's tariffs could raise inflation, along with threats to the Fed 's independence, have pushed rates higher.

A key issue for the Fed is that the economy is very different now than it was during Trump 's first term.

Back then inflation was actually below the Fed 's target.

But now, tariffs will almost certainly lift prices in the coming months , at least temporarily.

The Fed may move more slowly this time because of the threat of higher prices from tariffs.