Trump Advocates for Federal Reserve Rate Cuts Amid Economic Concerns
Former President Donald Trump has once again voiced his support for Federal Reserve rate cuts, asserting that the current economic landscape shows no signs of inflation. In a post on Truth Social on Monday, he stated, “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.”
Last week, Trump enacted tariffs on several nations, raising the total tariff on China to an unprecedented 54%. This decision has sparked retaliatory measures from affected countries, leading to a significant downturn in the markets. The futures tied to Wall Street’s tech-heavy Nasdaq index have plummeted to their lowest levels since January 2024, while Bitcoin has dipped below the $75,000 mark early Monday.
The combination of market apprehension and OPEC’s announcement to increase production has resulted in a dramatic 16% decrease in the price of West Texas Intermediate (WTI) crude oil, bringing it down to $60 per barrel within just four trading days. A decline in crude oil prices is known to contribute to disinflationary trends in the global economy.
Trump’s push for Federal Reserve rate cuts aligns with market expectations, which are currently pricing in the possibility of five rate cuts by the Fed this year. Potential easing from the Fed could assist markets in better navigating the repercussions of Trump’s assertive tariff strategy, which appears set to remain in place for the foreseeable future.
In his Monday post, Trump emphasized the long-standing economic disparities, specifically targeting China for its trade practices: “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!”
Over the weekend, Trump reiterated his stance on negotiations with China, stating that he will not engage in any trade deals until the persistent trade deficit issue is adequately addressed.
