WSJ Opinion: Potomac Watch With Inflation Still at 2.7%, Trump Proposes Fixing Prices on Credit Cards
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Jan 16, 2026 Kim Strassel, a Wall Street Journal opinion columnist known for her political and economic insights, joins Alicia Finley, also a WSJ columnist focused on financial reporting. They delve into the current inflation rate of 2.7%, highlighting its impact on households, particularly for essentials like food and shelter. The discussion shifts to Trump's controversial proposal to cap credit-card interest rates at 10%, examining potential economic repercussions, including access to credit and rewards. They also explore the political implications of inflation on lower-income Americans.
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Inflation Still Running Above Target
- Inflation remains elevated at 2.7% year over year and hasn't been falling recently.
- Key necessities like shelter, food, medical care, and energy are driving the pain for households.
Necessities Are Driving Affordability Pain
- Food inflation is particularly acute, with food away from home up 4.1% year over year.
- Energy and household insurance have jumped, hitting lower- and middle-income budgets hardest.
Let The Fed Do Its Job
- Donald Trump should avoid publicly pressuring the Fed to cut rates and instead let it focus on hitting its 2% inflation target.
- Sitting quiet on the Fed would likely be better for long-term affordability than pushing for premature rate cuts.