11 February 20–26, 2025 dallasobserver.com DALLAS OBSERVER Classified | MusiC | dish | Culture | unfair Park | Contents ducing the overall risk of deflation. The report comes after the Federal Re- serve neglected to lower interest rates, keep- ing them between 4.25% and 4.5% after several cuts in the latter half of 2024. A high interest rate can curb inflation by making it more difficult for borrowers to make high- ticket purchases like homes and cars. The Federal Reserve was slated to cut interest rates four times in 2025 but has reduced the proposed cuts to two. “Typically, raising interest rates should control inflation,” Pablo Troncoso, an eco- nomics professor at the University of Hous- ton said in the WalletHub study. “With a higher interest rate, people save instead of consuming or borrowing, cooling the econ- omy and reducing inflation pressure.” Inflation reached a 40-year high in 2022, when the inflation rate was 9.1%. Since then, lowering costs has been a hot-button topic for lawmakers. Drastically improving the economy, in part by by cutting inflation, was a prominent campaign promise of President Donald Trump’s leading up to the Nov. 5 election. “When you buy apples, when you buy bacon, when you buy eggs, they would dou- ble and triple the price over a short period of time,” Trump told NBC earlier in 2025. “And I won an election based on that. We’re going to bring those prices way down.” Since taking office, the president has is- sued a slew of controversial executive orders in the hopes of reducing federal spending and bolstering the economy. He failed to place a freeze on all federal funding and offered buy- outs to all government employees. Pre-inau- guration, Trump promised tariffs on imported goods, thereby promoting domestic production while also increasing the prices of all international goods. His tariffs have yet to go into effect, and it’s too early to witness the measurable effects of his economic policies. “There are many ways to reduce the pressure on prices,” Tranosco said. “The new administration has decided to reduce government expenditure by creating the White House’s Department of Government Efficiency, or DOGE, whose primary pur- pose is to reduce federal spending, which might reduce money supply and inflation pressure. At the same time, the new admin- istration has also decided to start a tariff war with several countries that might impact consumers and firms who face higher im- ported goods prices.” Trump has also called for lower interest rates, expressing disappointment with their stagnation. The president and Jerome Powell, the chairman of the Federal Reserve, have a contentious relationship. At the end of his first term, the president alluded to firing Powell af- ter nominating him to the position in 2017. “I have the right to do that or the right to remove him as chairman,” Trump said at a recent news conference. “He has, so far, made a lot of bad decisions, in my opinion.” With or without interest rate cuts, Dal- las’ economy has maintained as a business- friendly city while enjoying a not-too-high or too-low rate of inflation. “I think for the most part Dallas is pretty stable,” Lubo said. “I think [you’re] going to ride a few short-term shocks for the next few months, but I think in the long run, Dal- las is going to be OK.” ALWAYS IN YOUR FEED. CHOOSE YOUR CHANNEL
