On Social Media: "Tech Stocks and Nasdaq at Record Highs... No Inflation"
Trump Reiterates Pressure on Powell, Citing Tariff Impact
U.S. President Donald Trump reiterated his call for Federal Reserve (Fed) Chair Jerome Powell to swiftly cut interest rates, asserting that his tariff policies are driving the strength of the American economy.
On July 10 (local time), President Trump posted on his self-created social media platform, Truth Social, stating, "Since Trump's tariffs, Nvidia has risen 47% (in stock price)," and added, "Tech stocks, industrial stocks, and the Nasdaq index have all hit record highs, and cryptocurrencies have gone through the roof."
He asserted, "The United States is collecting hundreds of billions of dollars in tariff revenue. America is back now," and insisted, "The Fed should quickly lower interest rates to reflect this strength." He then declared, "There is no inflation," demanding that the Fed, which has been cautious about rate cuts due to inflation concerns, resume monetary easing.
President Trump has been advocating for interest rate cuts since his presidential campaign last year. Since taking office in January this year, he has become even more explicit in his demands. The previous day as well, he used social media to argue that the Fed should cut rates by 3 percentage points.
The Fed is scheduled to hold its regular Federal Open Market Committee (FOMC) meeting on July 29-30 to discuss whether to lower the current benchmark interest rate of 4.25-4.5% per year. Amid growing concerns about price increases due to tariff policies, there appears to be a split among Fed members regarding the timing of a rate cut. According to the minutes of the June FOMC meeting released the previous day, out of 19 Fed members, 10 expect at least two rate cuts this year, 2 expect one cut, and the remaining 7 anticipate rates will be held steady throughout the year.
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