In a recent post on Truth Social, President Donald Trump has once again called for the Federal Reserve to implement rate cuts, asserting that there is no inflation currently affecting the economy. Trump emphasized, “Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION, and the long time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place.”
This statement comes on the heels of Trump’s recent imposition of tariffs on several nations, including a significant increase of the total levy on China to 54%. These aggressive moves have prompted retaliatory actions from affected countries, and market reactions have been stark. The Nasdaq index, reflective of Wall Street’s tech-heavy sector, fell to its lowest point since January 2024, while Bitcoin plummeted to under $75,000 early Monday.
The cautious sentiment in the market is compounded by OPEC’s decision to boost oil production, which has contributed to a 16% decrease in West Texas Intermediate (WTI) crude oil prices, now at $60 per barrel. Lower crude prices are often associated with disinflationary pressures in the global economy, which could impact economic growth.
Trump’s advocacy for Fed rate cuts aligns with market forecasts that anticipate up to five rate cuts within the year. Such measures could potentially provide markets with a buffer against the fallout from Trump’s ongoing tariff policy, which seems poised to continue in the near term.
In his statement, Trump denounced China for profiting at the expense of the United States, saying, “The biggest abuser of them all, China, whose markets are crashing, just raised its Tariffs by 34%, on top of its long term ridiculously high Tariffs (Plus!), not acknowledging my warning for abusing countries not to retaliate. They’ve made enough, for decades, taking advantage of the Good OL’ USA! Our past ‘leaders’ are to blame for allowing this, and so much else, to happen to our Country. MAKE AMERICA GREAT AGAIN!”
The weekend’s developments culminated in Trump asserting that there will be no trade deal with China unless the trade deficit issue is satisfactorily resolved. As tensions continue to escalate, the ramifications on both domestic and international markets remain a point of significant concern.
