Trump Ally Says Fed Should Hold Rates Steady

• Inflation is currently around 3.5%, exceeding the Fed's 2% target, making rate cuts inappropriate; a rate hike might even be considered.
• Consumer confidence is low due to high prices, despite a strong job market with record low layoffs.
• High oil prices and trade disputes with Canada are seen as significant economic challenges, with the Strait of Hormuz's status being a key factor for oil prices.

Former Trump Senior Economic Adviser Stephen Moore argues that the Federal Reserve should hold interest rates steady, despite President Trump's calls for cuts, due to inflation running at 3.5% (above the 2% target). He notes low consumer confidence driven by high prices and identifies high oil prices and escalating trade tensions with Canada as economic risks that could affect Republican midterm election prospects.