President Trump Urges the Federal Reserve to Lower Interest Rates, Claims 'No Inflation'

Key Points:

• President Donald Trump renewed his push for Federal Reserve rate cuts, pointing to the absence of inflation and falling oil and food prices.

• Trump’s recent tariffs on China have caused market volatility, with both Nasdaq futures and Bitcoin seeing notable drops.

• Trump emphasized that he will not finalize a trade deal with China until the trade deficit issue is addressed.

President Donald Trump renewed his calls for Federal Reserve rate cuts, asserting that there is no inflation.

"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-abused USA is now bringing in billions of dollars a week from the countries that have been taking advantage, thanks to the tariffs already in place," Trump wrote in a post on Truth Social on Monday.

Last week, Trump imposed tariffs on several countries, raising the total levy on China to 54%, which prompted retaliatory actions. Since then, markets have plummeted, with futures linked to Wall Street’s tech-heavy Nasdaq index falling to their lowest level since January 2024. Bitcoin dropped below $75,000 early Monday.

The risk-off sentiment, combined with OPEC’s decision to increase production, has caused the price of West Texas Intermediate (WTI) crude oil to drop by 16%, reaching $60 per barrel in just four trading days. A lower oil price is typically seen as contributing to disinflation in the global economy.

Trump’s call for Fed rate cuts aligns with market expectations of five rate cuts this year. Potential Fed easing could help the markets better cope with the impact of Trump’s aggressive tariff policies, which are likely to persist.

In an early Monday post on Truth Social, Trump criticized China for profiting at the expense of the U.S. for decades.

“The biggest abuser of them all, China, whose markets are crashing, just raised its tariffs by 34%, adding to its already exorbitantly high tariffs (Plus!). They ignored my warning not to retaliate against the U.S. They’ve made enough over the years, taking advantage of the good ol’ USA! Our past 'leaders' are to blame for letting this happen to our country. MAKE AMERICA GREAT AGAIN!” Trump wrote.

Over the weekend, Trump reiterated that he will not make a deal with China unless the trade deficit issue is resolved.