President Trump Calls on Fed to Cut Rates, Says ‘No Inflation’
Author: Omkar Godbole | Edited by: Parikshit Mishra Updated: Apr 7, 2025 12:58 PM Published: Apr 7, 2025 11:30 AM
President Donald Trump again called on the Fed to cut rates, arguing there is no inflation.
“Oil prices are down, interest rates are down (the slow Fed needs to cut rates!), food prices are down, there is NO INFLATION, and the USA, which has suffered for so long, is getting billions of dollars a week from the offending countries thanks to the tariffs already in place,” Trump wrote in a post on Truth Social on Monday.
Last week, Trump imposed tariffs on a number of countries, increasing the overall tariff on China to 54%, prompting retaliatory measures. Since then, markets have tumbled, with futures linked to Wall Street’s tech-heavy Nasdaq index hitting their lowest since January 2024. Bitcoin fell below $75,000 on Monday morning.
Risk aversion, coupled with OPEC’s plan to increase production, has sent West Texas Intermediate (WTI) crude oil prices down 16% to $60 a barrel in four trading days. Lower crude prices are known to contribute to disinflation in the global economy.
Trump’s expectations for a Fed rate cut are in line with market expectations for five rate cuts this year. Potential Fed easing could help markets better cope with the fallout from Trump’s aggressive tariff policies, which are likely to remain in place for some time.
Trump noted in an early post on Truth Social on Monday that China has made enough money over the decades by taking advantage of the United States.
“The biggest abuser of them all, China, whose markets are collapsing, just raised their tariffs by 34% on top of their long-standing exorbitant tariffs (plus!), ignoring my warning to the abuser countries not to retaliate. They have already done so much harm for decades, taking advantage of the good ol’ USA! Our previous ‘leaders’ are responsible for allowing this and so much more to happen to our Country. MAKE AMERICA GREAT AGAIN!” Trump concluded.
Over the weekend, Trump said he would not sign a deal with China until the trade deficit was resolved.
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