Fed should cut rates, there is no inflation: Donald Trump's latest message to Jerome Powell

US President Donald Trump

United States President Donald Trump called on the Federal Reserve to cut interest rates as the markets continue to tumble, saying "there is no inflation." The US Federal Reserve will hold its next Federal Open Market Committee (FOMC) meet on May 6-7.

He took to Truth Social platform on Monday and posted "USA is bringing billions of dollars a week."

He said, "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."

"This is despite the fact that the biggest abuser of them all, China, whose markets are crashing, just raised its Tariffs by 34%, on top of its long term ridiculously high Tariffs (Plus!), not acknowledging my warning for abusing countries not to retaliate. They've made enough, for decades, taking advantage of the Good OL' USA! Our past "leaders" are to blame for allowing this, and so much else, to happen to our Country," he added.

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. POTUS pic.twitter.com/LhoMgc6qMX

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The White House (@WhiteHouse) April 7, 2025

On Friday, the US markets ended sharply lower as the S&P 500 dropped 5.97 percent, Nasdaq composite slumped 5.82 percent and the Dow tumbled 5.50 percent on Friday.

Former Treasury Secretary Lawrence Summers noted that the two day fall for the S&P was 10.5 percent.

"After US markets plunged on Friday, it was writing on the wall for other global equity indices which fell like a pack of cards amid fears that Trump's policies on reciprocal tariffs may lead to recession and higher inflation in the US going ahead.

"Already, commodity prices of crude oil and several metals are seeing a downward slide, which is an indication of a slackening demand if the current trend persists," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, told PTI.

Meanwhile, Fed Chair Jerome Powell told a business journalists' conference in Arlington, Virginia on Friday that Trump's new tariffs are "larger than expected," and the economic fallout including higher inflation and slower growth likely will be as well, according to Reuters report.

"We face a highly uncertain outlook with elevated risks of both higher unemployment and higher inflation," he said.

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