U.S. President Donald Trump has reiterated his call for the Federal Reserve to lower interest rates, addressing recent economic data. He also commented on tariffs on Chinese goods.
Trump's Call to the Fed and Markets
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. Market experts note that Trump's comments align with general market expectations and predict potential Fed rate cuts.
Tariff Increases on Chinese Goods
Another crucial issue raised by Trump concerns the tariffs on China. A new regulation raised tariff rates on certain imported products from China to as high as 54%. While Trump argues that this policy generates long-term revenue, experts contend it has adverse effects on the markets. Technology-focused Nasdaq futures saw significant declines, and the cryptocurrency market suffered notable losses.
Escalating US-China Tensions
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 stated, “I will not negotiate with China until the trade deficit is resolved,” indicating a lack of short-term progress in trade negotiations. Experts agree that escalating tensions will impact not only bilateral relations but also the global supply chain.
Trump's statements regarding Fed rate cuts and tariff increases emphasize the current economic tension in the U.S. and its relations with China, leaving the future economic policy and market scenarios uncertain.
