Former U.S. President Donald Trump has reignited the monetary policy debate with a bold statement on his Truth Social account. Declaring that “inflation is no longer an issue,” Trump called on the Federal Reserve to slash interest rates immediately. His message, delivered on April 7, 2025, has added fuel to growing uncertainty in global markets already shaken by aggressive tariff hikes and rising geopolitical tensions.
In his post, Trump emphasized falling oil and food prices as key indicators that inflation has been tamed. He criticized the Fed for not acting sooner, labeling their inaction a “delayed mistake.” The message also targeted China, accusing the country of decades-long economic abuse of the U.S., and justifying harsh new tariffs.
“There Is No Inflation Anymore,” Trump Claims
Trump’s full statement underscored his belief that the current economic environment calls for immediate rate cuts. He pointed to the recent 16% drop in oil prices, declining food costs, and falling yields as signs of a disinflationary trend. “Make America Great Again,” he concluded, reinforcing his signature nationalist message while emphasizing economic self-reliance.
According to Turkish NY Radio, this isn’t the first time Trump has pressured the Fed for accommodative policy — but it comes at a highly sensitive time. Markets are already jittery from escalating trade disputes, and his remarks could significantly impact investor expectations around monetary policy in 2025.
Tariffs Fuel Market Anxiety, Crypto Takes a Hit
Trump recently raised tariffs on Chinese imports to as much as 54%, intensifying the U.S.–China trade conflict. The Chinese government retaliated with a 34% hike in their own tariffs, sending shockwaves through both traditional and crypto markets. Nasdaq futures hit their lowest point since January 2024, and Bitcoin dipped below $75,000. Altcoins experienced even sharper declines.
Although there was a brief market rebound following early reports of a potential 90-day delay in the new tariffs, that optimism quickly vanished. A White House spokesperson later dismissed the reports as “fake news,” reaffirming Trump’s hardline stance.
Oil Price Collapse Adds to Deflationary Narrative
Trump cited the sharp drop in WTI crude oil — which fell to $60 per barrel in just four days — as further evidence of weakening inflation. The drop was fueled by OPEC’s increased supply projections and declining global demand. Economists have noted that such moves could exert broader deflationary pressure across global markets.
While some analysts see the energy price decline as a relief for consumers, others warn it could signal weakening economic momentum — a factor that may justify Trump’s renewed demand for looser monetary policy.
Will the Fed Follow Trump’s Lead?
Trump’s comments align with market expectations for multiple Fed rate cuts in 2025. However, rising tariffs and trade instability complicate the Fed’s calculus. Aggressive monetary easing during a trade war could send mixed signals and destabilize investor confidence further.
The Federal Reserve has not yet responded to Trump’s latest remarks. Investors will closely watch upcoming FOMC communications for any indication of policy shifts. Meanwhile, both equity and crypto traders are recalibrating strategies in anticipation of increased volatility.
As Turkish NY Radio continues to follow this developing economic story, all eyes remain on the Fed — and how they’ll navigate Trump’s political pressure amid an already uncertain financial climate.
Sources & References
- Truth Social – Donald Trump Official Account, April 7, 2025
https://truthsocial.com - CNBC – White House Denies Tariff Delay Rumors After Trump’s Social Post
https://www.cnbc.com - Bloomberg – Trump Calls for Rate Cuts as Oil Drops, Says Inflation Over
https://www.bloomberg.com
