President Trump Calls for Rate Cuts, Asserts ‘No Inflation’ in Economy

Former President Donald Trump is once again pressuring the Federal Reserve to cut interest rates, arguing that inflation is no longer a threat as key prices fall and global markets absorb the shock of his latest tariff measures.

“Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION,” Trump wrote Monday on Truth Social. “The long time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place.”

His comments come on the heels of a sweeping tariff hike imposed last week, which increased duties on Chinese goods to 54%. Beijing responded with its own 34% tariff hike, prompting a sharp downturn in global markets. Nasdaq futures dropped to levels not seen since January 2024, and Bitcoin fell below $75,000 early Monday.

The tariffs have triggered risk-off sentiment across assets, further fueled by OPEC’s announcement that it plans to raise oil production. As a result, West Texas Intermediate crude has dropped 16% in just four trading days, now sitting at $60 per barrel—its lowest level in months. The decline in energy prices could add further downward pressure on inflation globally.

Despite rising market volatility, Trump insists the Fed must act. His position echoes market expectations for multiple rate cuts in 2025, with futures pricing in up to five reductions by year’s end. Analysts suggest that monetary easing could help mitigate the economic damage from Trump’s aggressive trade stance, which shows no signs of softening.

Trump also lashed out at China in his Monday post, accusing it of long-term trade abuse. “China, whose markets are crashing, just raised its Tariffs by 34%… They’ve made enough, for decades, taking advantage of the Good OL’ USA!” he wrote, blaming past U.S. leadership for allowing the imbalance.

Over the weekend, Trump further hardened his position, stating he would not strike a deal with China unless the trade deficit is directly addressed—signaling continued friction with America’s largest trading partner.