look news india
There was a stir in the global economic forums and the corridors of American politics when US President Donald Trump gave a surprising statement on the inflation front which no one had even imagined. While talking to reporters at the White House, President Trump not only openly welcomed the new government data of inflation rate in the country crossing the psychological level of four percent (4%), but also said in a very strange tone that he likes inflation. However, soon after this, he reassured the markets around the world and reiterated his old promise and claimed that as soon as the ongoing Iran war in the Gulf region ends, the prices of fuel and other essential commodities in the global market will fall very rapidly.
US inflation rate reaches highest level in 3 years, Trump’s statement creates stir before mid-term elections
In fact, in the latest report released by the US Labor Department, it was revealed that in the month of May, the Consumer Inflation Rate has broken the record of its highest and fastest pace in the last three years. When White House reporters asked President Trump a direct question on this very sensitive figure and asked whether this increased level of inflation before the US midterm elections to be held in the coming November can cause huge political loss to the leaders and candidates of his Republican Party? So Trump responded to this in his usual outspoken style and said directly:"I like inflation." This one sentence of his has shocked economists all over the world.
Bloody conflict in West Asia sets fuel prices on fire, chaos in global market
In this detailed economic report of the Labor Department, it has been clearly made clear that the main and biggest reason for the inflation that is currently being witnessed in the whole world including America during the month of May is the ongoing fierce military conflict with Iran in West Asia (Middle East). Due to this war, the supply of crude oil in the international market has been disrupted and there has been a huge increase in the prices of fuel and petroleum products. Due to cost of fuel, freight transportation has become expensive, which is directly impacting the pockets of common consumers.
Impact on Federal Reserve also visible, hopes of cutting interest rates by 2027 completely bleak
This unexpectedly increasing inflation rate has created a very difficult and new challenge for the Central Bank of America i.e. the Federal Reserve. Economic experts and market analysts believe that these new and tough data for the month of May have now given a very strong and solid basis to the Federal Reserve that it should not make any cuts or major changes in its main interest rates at least till the coming year 2027. This simply means that the American public and the global markets currently do not see any hope of getting relief from this era of expensive EMIs and high interest rates.
Trump’s master plan: The key to the global economy lies on Iran war
Clarifying the strategic vision behind his controversial statement, President Trump assured the American public that this situation is extremely temporary. He said that no matter how much noise the opposition and media make about inflation, they have a perfect master plan ready to come out of this crisis. According to Trump, ending the ongoing tension in the Middle East and the Iran war is the only and most permanent solution to this global inflation. As soon as there is a complete end to this war through American diplomacy or military pressure, oil wells will start functioning again and commodity prices will fall dramatically as supply chains around the world normalize.
