- Trump is pressing the Fed to cut rates even as his tariff policy sparks market turmoil.
- Global indexes are tanking, and analysts see more room for downside.
- Billionaires and economists are sounding alarm bells about the risks ahead.
As stocks slid into the red for a third straight day, President Donald Trump jumped on Truth Social, calling for a rate cut and touting the billions in tariff revenue. “Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION,” he wrote, before jabbing China for its retaliatory move.
Markets plunge across the globe
Trump’s aggressive tariff strategy is shaking up more than just U.S. equities. The S&P 500 is down more than 10% in just two days, the Nasdaq is deep in bear territory, and global markets are cracking. China’s Hang Seng index dropped over 13%, and Japan’s Nikkei 225 fell into bear market after shedding nearly 8% on Monday.
Stocks, oil, and investor confidence all falling
It’s not just stocks. Oil prices hit a four-year low, with WTI crude slipping under $60. Wall Street strategists like Citi’s Stuart Kaiser are warning there’s more pain ahead. Several major banks have already cut their forecasts for the S&P 500 for the year.
Trump sticks to his playbook
Even with the sell-off, Trump shows no signs of backing down. On Friday, he doubled down on his call for the Fed to act: “This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates.” Meanwhile, Powell himself said it’s “too soon” to say what’s next for monetary policy, citing uncertainty from the “larger-than-expected” tariffs.
Big names in finance are uneasy
JPMorgan CEO Jamie Dimon said the tariffs may fuel short-term inflation and hurt growth, though he’s not sure they’ll trigger a full-on recession. Bill Ackman went further, warning of an “economic nuclear winter” unless Trump changes course. “The global economy is being taken down because of bad math,” he wrote Monday.
