Trump Urges Fed to Cut Interest Rates, Emphasizes “No Inflation”

President Donald Trump urged the Fed to cut interest rates, citing the current decline in oil and food prices, asserting that the US economy has almost no inflation.

In a post on the Truth Social platform on the evening of April 7, 2025, President Donald Trump emphasized that oil and food prices are currently falling, calling on the US Federal Reserve (Fed) to cut interest rates, arguing that there are currently no signs of inflation in the economy.

“Inflation does not exist. It is time for the Fed to act and cut interest rates,” Trump emphasized in the post.

At the same time, Trump asserted that the US is earning billions of dollars every week from tariffs imposed on countries that have “abused trade” with the US for a long time. He also did not hesitate to accuse China - the main target of the new tariffs - saying that this country has "made enough for decades by taking advantage of the United States."

"The Chinese market is collapsing, but they still increase tariffs by 34%. They do not listen to my warnings. Enough!", Trump declared, criticizing this as the consequence of previous Presidents who allowed this situation to happen.

In a previous speech, President Donald Trump also declared that he would not sign any trade agreement with China if the trade deficit issue was not thoroughly resolved.

Mr. Trump's statement came after major economies such as China and Canada chose not to make concessions to the US but instead retaliated, bringing the trade war to a new level of tension. This directly negatively affected the global financial market, including crypto.

The crypto market fell into a “risk-off” state with fears of a “Black Swan” event, Bitcoin fell below the $75,000 mark, now recovering to around $77k per BTC.

Back at the time of the most recent meeting in March, the Fed decided for the second consecutive time not to adjust interest rates. The Fed representative at that time affirmed that the US economy was still growing at a stable pace, the unemployment rate had decreased to a low level in recent months, but the inflation situation had not yet been brought back to the Fed’s expected target – the main reason why the Federal Reserve has not resumed the interest rate cut trend.

The Fed forecasts that there will only be 2 0.25% interest rate cuts in 2025, focusing on the second half of the year. The Fed’s next rate adjustments are scheduled for May, June, July, September, October, and December.

However, with the latest push, coupled with a series of tariffs from the Trump administration, the Fed may soon take appropriate action amid the current escalating tensions.