As the U.S. Treasury Secretary gears up for a congressional address, signals of reconciliation with China come to the forefront. Meanwhile, President Trump has announced progress towards finalizing an important agreement, coinciding with Bitcoin trading around the $110,000 level. Alongside these developments, core U.S. inflation has surpassed expectations, as the White House reiterates ongoing efforts to curb inflationary pressures.
What Led to the Dramatic Inflation Drop?
In 2021, inflation that had ballooned to unprecedented heights plunged from above 9% to below 3%, largely due to the Federal Reserve’s assertive interest rate adjustments and sustained tight monetary strategy. However, the Federal Reserve initially hesitated to act swiftly against the rising inflation, mirroring its current sluggishness in implementing interest rate reductions. President Trump has often criticized Federal Reserve Chairman Jerome Powell for being “consistently late” and is urging the reduction of interest rates.
How Did Inflation Figures Compare Under Trump’s Tenure?
Under Trump’s administration, inflation figures consistently trended below anticipated levels, with vital metrics like the Personal Consumption Expenditures (PCE) showing significant improvement. The core inflation rate reached its lowest since March 2021.
“President Donald J. Trump propels the nation into a new Golden Age of reduced costs, higher wages, and economic opportunities for all, as America conquers inflation.”
Wage increases were notable, rising by 2% over the previous year. Additionally, energy prices experienced a decrease, dropping by 1% in the last month and marking a 3.5% annual decline. CNN’s Matt Egan reported positive inflation outcomes, noting that while tariffs loomed, inflation remained under control. Fox Business Network’s Maria Bartiromo also emphasized that the data exceeded market expectations.
“We are now discussing low double digits—below 2.5%—and have observed this trend for three consecutive months. It’s fantastic news.”—Adam Johnson
With a year until midterm elections, the Trump administration is dedicated to highlighting economic achievements. However, it recognizes that current aggressive tariff policies are not sustainable. Trump’s team continues to spotlight positive economic stories to sway voters, expressing concerns about economic tensions escalating.
Key conclusions from this economic landscape are:
- U.S. core inflation drastically reduced from above 9% to under 3% due to stringent monetary policies.
- The White House maintains a positive economic message, focusing on wage increases and reduced energy costs.
- Tensions regarding tariffs present challenges that could impact future inflation trends and interest rates.
The Trump administration is actively working to prevent tariffs from exacerbating inflationary pressures, which could boost cryptocurrencies. This approach may catalyze interest rate reductions, fostering further cryptocurrency value growth. As 2025 draws to a close, the outlook remains hopeful should major global conflicts be avoided, providing optimism for cryptocurrency investors across the board.
