Trump Can't Demand Lower Rates While 'Creating Inflation' With Tariffs And Money Printing, Says Ross Gerber — Backs Fed's Patience

Ross Gerber, the CEO of Gerber Kawasaki Wealth & Investment Management, is throwing his weight behind the Federal Reserve’s decision to hold the rates, while sharply criticizing President Donald Trump’s trade and tariff policies, alongside the fiscal expansion that is resulting in inflation.What Happened: On Wednesday, in a post on X, Gerber said that Federal Reserve Chair Jerome Powell was “doing the right thing” by holding interest rates steady, while waiting to assess the full impact of Trump’s tariff.Gerber argues that if Trump wants lower interest rates, he should avoid policies that actively stoke inflation, such as the inflationary tariff policy and the “One Big, Beautiful Bill,” which is set to push the fiscal deficit higher, along with the country’s debt. The GOP bill that narrowly passed through the House in May comes with extensive tax cuts, alongside increased spending on defense, manufacturing, and infrastructure.“If Trump wants lower rates, then he should stop working on creating inflation through vast amounts of money printing,” he said.Gerber's reference to “money printing” refers to the potential for large-scale deficit spending under the second Trump administration. As the Treasury issues more debt to finance its growing deficit, the Fed might be pressured to intervene and purchase government bonds, something that is equated to printing money.The Fed has kept its benchmark interest rates at a target range of 4.25% to 4.50%, with the last 25 basis point cut coming in December. While the markets are pricing in potential rate cuts later this year, persistent inflation and policy uncertainties continue to be headwinds.Why It Matters: Gerber has joined the growing chorus of other prominent experts, economists, and intellectuals who’ve come out against Trump’s budget reconciliation bill in recent weeks.Trump ally and former head of the administration’s Department of Governmental Efficiency, Elon Musk, has called the bill “a disgusting abomination.”Musk’s attack received the backing of Peter Schiff, who hopes that “Elon can persuade Trump to veto it if it passes the Senate in its current form, or anything close to it.”Former Treasury Secretary Lawrence Summers did not mince words when criticizing the administration’s fiscal policies, referring to the “One Big, Beautiful Bill” as a prescription for “Deadly, Dangerous Decline.”However, those within the Trump administration have come out in support, with White House economic advisor Kevin Hassett saying last week that the U.S. economy narrowly avoided a recession thanks to the GOP-backed tax bill. Hassett adds that not passing the bill would have, in fact, resulted in one of “the biggest tax hike in American history,” which would have “cut about 4% off of GDP growth,” and “we’d have had a recession,” he said.Price Action: U.S. Treasuries have been inching up in recent weeks, in response to the tariffs and growing fiscal concerns. The 10-Year Treasury yields stand at 4.375%, followed by the 20-Year and 30-Year notes offering yields of 4.902% and 4.90%, respectively. Photo Courtesy: miss.cabul on Shutterstock.com Trump Family’s Crypto ‘Conflicts Of Interest’ Are Coming In The Way Of Law Meant To Regulate Digital Assets, Says Gregory Meeks