Federal Reserve officials face mounting pressure to reconsider their stance on interest rates after a closely watched survey showed businesses expecting the slowest pace of cost increases since the pandemic began—exactly the kind of data the Trump administration has been pointing to in its calls for lower borrowing costs.
On Wednesday, the Federal Reserve Bank of Atlanta reported that firms anticipate their costs will rise just 2.0 percent over the next year, down from 2.2 percent in December. The reading matches the lowest level hit in the post-pandemic era and directly contradicts warnings from Fed officials that tariff policies could fuel persistent inflation.
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