Trump Escalates Fed Attacks as Markets Brace for CPI Data and Credit Card Rate Cap Threat

Trump Heads to Detroit for Economy Speech Ahead of Key CPI Release

President Trump is scheduled to deliver a major speech on the U.S. economy in Detroit, coinciding with the release of December CPI inflation data from the Bureau of Labor Statistics at 8:30 a.m. November's CPI came in at a lower-than-expected 2.7%, bolstering Trump's affordability messaging.[6]

The timing underscores heightened tensions, as federal data delays from the prior government shutdown persist, with reports on retail sales and industrial production still catching up.[1]

Trump Administration Targets Federal Reserve with DOJ Subpoenas

The Trump administration has escalated its feud with the Federal Reserve, serving DOJ subpoenas on the central bank amid ongoing attacks.[5]

Fed Chair Jerome Powell pushed back firmly, as Wall Street reacts with a resurgent "Sell America" trade. Stocks like Citigroup, Visa, Mastercard, and American Express declined sharply in response.[5]

Rebecca Patterson from the Council on Foreign Relations noted the intensifying Trump-Fed conflict, including threats over credit cards.[5]

Trump Demands 10% Credit Card Interest Rate Cap by January 20

Trump warned credit card companies to cap interest rates at **10% for one year** by January 20 or face legal violations.[5]

This follows his expressed inclination to exclude Exxon from Venezuela-related restrictions, signaling broader policy pressures on financial sectors.[5]

• Citigroup down 3%
• Visa, Mastercard, and American Express also fell
• Investors eye AI winners like Alphabet amid volatility

Government Shutdown Aftermath Delays Critical Economic Data

Federal workers continue overtime to release delayed reports including retail sales, industrial production, housing starts, new home sales, and durable goods orders.[1]

The temporary spending bill from November 2025, ending the 43-day shutdown, expires by month's end, raising fresh shutdown risks.[1]

Recent data shows Q3 GDP grew at **4.3% annualized**, beating forecasts, with November adding 64,000 jobs despite October losses.[1]

Markets on Edge with Fed Rate Projections and Policy Shifts

The FOMC recently cut rates by 0.25% to 3.50%-3.75%, with projections for higher growth, lower inflation, and unemployment.[4]

Analysts see potential for two Fed cuts in 2026 if inflation cools, banking on productivity from AI and fiscal boosts like the One Big Beautiful Bill Act.[3][4]

Private data from ADP suggests slowing job growth, contrasting official BLS figures.[4]