Share this article

President Trump Pushes Fed to Cut Rates, Says 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, Trump said.

Trump says there is no inflation. (geralt/Pixabay)
Trump says there is no inflation. (geralt/Pixabay)

What to know:

  • President Donald Trump reiterated his call for Federal Reserve (Fed) rate cuts, citing a lack of inflation and declining oil and food prices.
  • Trump's recent tariffs on China have led to market turmoil, with Nasdaq futures and bitcoin experiencing significant declines.
  • Trump stated he will not make a trade deal with China until the trade deficit issue is resolved.

President Donald Trump reiterated calls for Fed rate cuts, saying 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 time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place," Trump said on a Truth Social post on Monday.

jwp-player-placeholder
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters

Trump imposed tariffs on several nations last week, boosting the total levy on China to 54%, which drew retaliatory action. Since then, markets have collapsed, with futures tied to Wall Street's tech-heavy Nasdaq index hitting the lowest since January 2024. Bitcoin fell to under $75,000 early Monday.

The risk-off, coupled with OPEC's plan to boost production, has driven the West Texas Intermediate (WTI) crude oil per barrel price lower by 16% to $60 in four trading days. A lower crude is known to inject disinflation into the global economy.

Trump's bias for Fed rate cuts is consistent with the market pricing for five Fed rate cuts this year. Potential Fed easing may help markets better absorb the impact of Trump's aggressive tariffs policy, which will likely stay here for some time.

Trump noted in his early Monday Truth Social post that China has made enough for decades while taking advantage of the U.S.

"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!," Trump said.

Over the weekend Trump said he won't make a deal with China unless the trade deficit issue is solved.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team based in Mumbai, holds a masters degree in Finance and a Chartered Market Technician (CMT) member. Omkar previously worked at FXStreet, writing research on currency markets and as fundamental analyst at currency and commodities desk at Mumbai-based brokerage houses. Omkar holds small amounts of bitcoin, ether, BitTorrent, tron and dot.

CoinDesk News Image

More For You

WIF Suffers Sharp 11% Decline Before Mounting Recovery to $1.21

"WIF price chart showing an 11% intraday decline to $1.16 support followed by recovery to $1.21 amid strong institutional buying and technical cup-and-handle pattern signaling potential upside."

Solana-based digital asset demonstrates institutional resilience following support test at $1.16, as large-scale investor activity and technical formations suggest potential upside momentum.