Trump Says Inflation is ‘Defeated’ and the Fed Has Cut Rates, Yet Prices Remain Too High for Many

TOPSHOT – US President Donald Trump gestures as he walks to Marine One on the South Lawn of the White House in Washington, DC, on October 10, 2025, on his way to Walter Reed National Military Medical Center to receive a medical checkup. (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images)

WASHINGTON (AP) — Inflation has risen in three of the last four months and is slightly higher than it was a year ago. Yet you wouldn’t know it from listening to President Donald Trump or even some of the inflation fighters at the Federal Reserve who have dismissed or even downplayed inflation. That could prove risky for both the White House and the Fed while inflation is still above the Fed’s target of 2%. Surveys show that many Americans still see high prices as a major burden on their finances. And the Fed’s inflation-fighting credibility could take a hit if prices keep going up.