Key Points:
- President Donald Trump has reiterated his request for the Federal Reserve to reduce interest rates, citing low inflation and decreasing oil and food prices.
- He remarked that his recent tariffs on China have caused market disturbances, resulting in significant declines in Nasdaq futures and Bitcoin.
- Trump stated that he would not engage in a trade agreement with China until the trade deficit is addressed.
“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 declared on a recent Truth Social post.
Trump’s tariffs on various countries increased the total charge on China to 54%, prompting retaliations. The markets have seen downturns, with the Nasdaq index futures dropping to their lowest since January 2024 and Bitcoin prices sliding below $75,000 early Monday.
The decline in oil prices, driven by OPEC’s plans to enhance production, has resulted in a 16% drop in West Texas Intermediate (WTI) crude oil per barrel, now priced at $60.
Trump’s preference for Federal Reserve rate cuts aligns with the market’s expectation for five rate reductions within this year, which may assist in softening the market’s response to his aggressive tariff strategies.
In a Truth Social post earlier this week, Trump remarked that China has benefitted disproportionately for years at the expense of the U.S.
“The biggest abuser of all, China, whose markets are crashing, just raised its Tariffs by 34%, on top of its long-standing ridiculously high tariffs (Plus!). Our past ’leaders’ are responsible for allowing this to happen. MAKE AMERICA GREAT AGAIN!”
Over the weekend, Trump mentioned that he would not negotiate a deal with China until the trade deficit issue is resolved.
