Former President Donald Trump is once again urging the Federal Reserve to slash interest rates, citing falling prices across key sectors and downplaying inflation concerns—even as markets digest the fallout from his latest round of tariffs.
In a Monday morning Truth Social post, Trump wrote: “Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION.” He also boasted that the U.S. is now collecting billions each week through tariffs placed on what he called “abusing countries.”
The comments come just days after Trump raised tariffs on Chinese imports to 54%, prompting a swift retaliatory response from Beijing. China hiked its own tariffs by 34%, further straining trade relations and sparking volatility in global markets. U.S. tech stocks have taken a hit, with Nasdaq futures plunging to their lowest level in over a year, and Bitcoin briefly falling below $75,000.
Commodities were also caught in the storm. West Texas Intermediate crude dropped 16% in four days to $60 per barrel, a move amplified by OPEC’s announcement to increase oil production. The drop in energy prices is likely to exert downward pressure on inflation—a point Trump has seized on to back his call for rate cuts.
“China’s markets are crashing,” Trump added, while blaming previous U.S. leadership for allowing the current imbalance. “They’ve made enough, for decades… Our past ‘leaders’ are to blame for allowing this.”
Trump has made it clear he won’t consider a trade deal with China unless the U.S. trade deficit is addressed, a position he reaffirmed over the weekend.
Meanwhile, investors are increasingly betting on Fed action. Markets are currently pricing in up to five rate cuts this year, which could offer some cushion against growing economic headwinds.
Whether the Fed listens remains to be seen—but Trump is making sure his position is heard loud and clear.
