With Inflation ‘Not a Problem,’ Trump Demands Fed Rate Cuts

Former President Donald Trump is ramping up his campaign for lower interest rates, insisting inflation is no longer an issue even as markets react sharply to his latest trade moves.

“Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION,” Trump posted Monday on Truth Social. He also claimed the U.S. is collecting “billions a week” from tariffs imposed on what he described as “abusing countries.”

His comments follow a sweeping tariff hike last week that raised duties on Chinese imports to 54%. In retaliation, China increased its own tariffs by 34%, triggering a market selloff. Nasdaq futures dropped to their lowest levels since January 2024, while Bitcoin slid under $75,000.

Oil prices tumbled as well, with West Texas Intermediate crude falling 16% in four sessions to $60 per barrel—pressured by both risk aversion and OPEC’s announcement to boost supply. The sharp decline in oil has reinforced expectations of disinflation, which Trump argues should pave the way for the Fed to act.

“China… just raised its Tariffs by 34%… They’ve made enough, for decades, taking advantage of the Good OL’ USA!” Trump said, blaming past U.S. administrations for failing to stop the imbalance. He also reaffirmed over the weekend that no new trade deal with China would be possible unless the trade deficit is addressed.

Markets have already begun pricing in up to five Fed rate cuts this year. Analysts say monetary easing may be critical to offsetting the economic drag from prolonged trade tensions and slowing global demand.

While Trump’s inflation claims may be debated by economists, one thing is clear: the pressure on the Fed—and the markets—is only growing.

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