US President Donald Trump and Fed official Thomas Barkin simultaneously made critical statements on both domestic and foreign policy.
While calling on the Fed to cut interest rates, Trump made striking warnings about the Ukraine-Russia war and shared developments regarding a series of trade agreements.
Trump argued that the Fed should cut interest rates and stated that Fed Chair Jerome Powell was late on this issue.
Fed Richmond President Thomas Barkin offered an indirect response to interest rate policy. Barkin stated that they do not expect a return to the high inflationary pressures seen in 2022, but noted that customs duties could create new price pressures. He added that the final tariff levels have not yet been finalized.
On foreign policy, Trump addressed the war between Russia and Ukraine, warning that if the two sides fail to reach an agreement within 50 days, there could be “dire consequences.” He also warned Ukrainian President Zelenskyy that he “shouldn’t target Moscow.” Trump emphasized that he wasn’t taking sides, saying, “My goal is to stop the killing.”
Trump announced that the US will impose a 19% tariff on Indonesia under a trade agreement being worked out, but that US exporters will not pay any taxes. He also said the US will provide full access to the Indonesian market. He noted that Indonesia possesses valuable resources such as rare earth elements.
Trump announced that new tariff measures are underway for Brazil, adding that negotiations with the European Union are ongoing and that he believes the results will be satisfactory for everyone. He also stated that new agreements with India, which will provide market access, will be announced soon.
*This is not investment advice.