Trump Demands Fed Slash Rates as Inflation Cools, Markets Surge

Holy smokes, folks! Donald Trump is cranking up the heat on the Federal Reserve, demanding a full percentage point rate cut after Wednesday's inflation data came in cooler than expected. The former prez is not holding back, insisting that a lower rate would slash those hefty federal interest payments.

Meanwhile, U.S. markets are popping off as the Washington-Beijing trade talks show some real progress, and the economic data screams "healthy economy!" The Dow Jones Industrial Average rocketed up 142 points, a sweet 0.3% gain, but it's trailing behind the Nasdaq, which soared a solid 0.4%.

In a fiery Truth Social post, Trump called the May Consumer Price Index "great numbers" and demanded that the Fed "lower one full point." He's screaming in all caps that it "Would pay much less interest on debt coming due. So important!!!"

The CPI rose 2.4% year-over-year in May, just a tad below the 2.5% forecast, while the core CPI, which ditches food and energy, climbed 2.8%, matching April's pace. And get this—the monthly increases were soft as heck, with both headline and core CPI barely nudging up 0.1%, missing the mark.

A rate cut? That's like a turbo boost for crypto and other risky investments. It weakens the U.S. dollar, tanks yields on traditional assets, and pumps more liquidity into the financial system, driving more cash into digital assets. Cha-ching!

The data's got everyone buzzing about potential rate cuts later this year, but the Fed's playing it cool, saying they need to see sustained disinflation before they hit the easy button.

China - U.S. Trade Update

Hold onto your hats, folks! President Trump just dropped a bombshell, announcing that a U.S.-China trade deal is "done" after two intense days of negotiations in London. They've got a tentative "framework deal" that might just ease the tension between these economic giants.

But wait, there's a catch! The deal still needs the thumbs-up from both Trump and Chinese President Xi Jinping before it can stop those nasty tariffs set to hit on July 9.

Tensions had been sky-high since the May Geneva talks, with China cutting off rare earth exports and the U.S. targeting Chinese students linked to the Communist Party. Details on this new deal are still hush-hush, but both sides are nodding and smiling, signaling progress.