U.S. President Donald Trump has reiterated his call for the Federal Reserve (Fed) to lower interest rates, evaluating recent economic data. He highlighted the recent declines in oil and food prices, asserting that inflation has effectively dissipated. Additionally, Trump defended the increase in tariffs imposed on China, claiming it opens the door to billions of dollars in revenue. However, markets continue to struggle to find direction, both before and after Trump’s assertions.
Trump Urges Fed: Interest Rates Should Drop, Economy Needs Revival
In a statement on social media, Trump emphasized that the Fed needs to implement interest rate cuts. He remarked, “Oil prices have dropped, interest rates fell, food prices have also decreased; inflation is not observed,” arguing that the central bank should act swiftly considering this scenario. Trump believes that supporting economic activity through lower rates could revive growth.
Market experts note that Trump’s comments align with general market expectations. Predictions for five Fed rate cuts throughout the year are gaining traction, and traders have already begun pricing in potential easing in monetary policy. Conversely, some argue that the belief in controlled inflation might be overly optimistic, asserting that a clear and lasting decrease in inflation has yet to manifest.
Trump’s call to the Fed holds significant value as it could lead to renewed interest in risky assets, such as stocks and cryptocurrencies.
Increase in Tariffs Disrupts Markets, Cryptocurrency Values Plummet
Another crucial issue raised by Trump concerns the tariffs on China. A new regulation that came into effect last week raised tariff rates on certain imported products from China to as high as 54%. While Trump argues that this policy will generate long-term revenue, experts contend that it has created adverse effects in the markets. The increased tariff rates have deepened uncertainty in the global trade environment, compounded by countermeasures.
Following these developments, technology-focused Nasdaq futures have fallen to their lowest levels since January 2024. The cryptocurrency market also experienced notable declines, with Bitcoin 
$105,042 dropping below $75,000 in the early hours of trading, raising concerns among investors.
Specifically, the West Texas Intermediate (WTI) crude oil prices have plummeted by 16% over four trading days, lowering to $60, which has heightened expectations for disinflation and fueled market volatility.
US-China Tensions Escalate
Trump’s remarks also addressed China, arguing that the nation has gained an advantage over the U.S. for years. He emphasized that the new tariffs aim to rectify this imbalance. Furthermore, he criticized the Beijing administration for raising tariff rates to 34% despite the collapse of their own markets.
In another statement on social media, Trump asserted, “I will not negotiate with China until the trade deficit is resolved,” demonstrating a firm stance. This declaration suggests a lack of short-term progress in trade negotiations. Experts agree that the escalating tensions between the U.S. and China will impact not only bilateral relations but also the global supply chain.
