'No inflation!' Trump shrugs off market meltdown, pushes Fed to cut rates as China retaliates
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Synopsis
US President's comment came just hours after major indices from Wall Street to Asia suffered steep losses, with Trump’s 10% blanket import duty and looming 50% reciprocal tariffs sparking fears of economic slowdown.
US President Donald Trump on Monday downplayed growing concerns over economic instability, insisting that there is “no inflation” despite global market turmoil triggered by his aggressive new tariff regime.
In a fiery post on Truth Social, Trump touted falling oil and food prices, and took aim at the US Federal Reserve for not acting swiftly enough to cut interest rates.
“Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION,” Trump wrote, claiming that tariffs are bringing in “billions of dollars a week” from “abusing countries” like China. The post came as markets around the world reeled from the sudden imposition of a 10% blanket import duty on all US trading partners, with reciprocal tariffs—some as high as 50%—set to follow.
Also read: Is Donald Trump crashing global markets on purpose? What we know so far
While Trump framed the move as long-overdue economic justice, experts warn it could backfire. China, which Trump called “the biggest abuser of them all,” has retaliated with a 34% tariff hike on US goods. Its stock markets are sliding, but so are those in the US and elsewhere. On Wall Street, the S&P 500 lost 11% over two sessions, while Asian markets saw one of their worst days in years.
Economists are also pushing back on Trump’s claim of “no inflation,” pointing to the risk that tariffs will drive up consumer prices in the coming months. Meanwhile, the Fed remains cautious, resisting political pressure to slash rates rapidly.
Despite the chaos, Trump struck a defiant tone: “They’ve made enough, for decades, taking advantage of the Good OL’ USA!” he wrote, blaming past American leaders for allowing what he described as decades of trade abuse.
As global markets teeter and fears of a recession mount, Trump’s economic gamble—and the Fed’s response—could shape the financial landscape in the months ahead.
Also read: Stock markets crash: China, Japan, Hong Kong and Taiwan markets top losers. Is India still better?
Amid a global market meltdown, benchmark indices crashed on Monday, marking their steepest single-day drop in 10 months. Investor panic deepened over fears of a looming recession and Donald Trump’s aggressive new tariffs fueling a full-blown trade war.
The BSE Sensex crashed 2,226.79 points to close at 73,137.90, while the NSE Nifty50 slumped 742.85 points to settle at 22,161.60. Broader markets also buckled under intense pressure during the volatile session.