U.S. President Donald Trump and Fed official Thomas Barkin simultaneously made critical statements about both domestic and foreign policy.
While calling for the Fed to cut interest rates, Trump issued notable warnings about the Ukraine-Russia war and shared developments related to a series of trade agreements.
Trump argued that the Fed should cut interest rates and stated that Fed Chairman Jerome Powell has delayed on this issue.
Richmond Fed President Thomas Barkin provided indirect responses regarding interest rate policy. Barkin stated that they do not expect inflationary pressures as high as in 2022 to return, but noted that tariffs could create new price pressures. He added that the final tariff levels are yet to be finalized.
On foreign policy, Trump referred to the war between Russia and Ukraine, warning that if both sides do not reach an agreement within 50 days, there could be "catastrophic consequences." He also warned Ukrainian President Zelensky that he "should not target Moscow." Trump emphasized that he is not taking sides, stating, "My goal is to stop the killing."
Trump announced that the United States would impose a 19% tariff on Indonesia under a trade agreement being negotiated, but U.S. exporters would not have to pay any tariffs. He also mentioned that the United States would allow 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 being implemented against Brazil, while also stating that negotiations with the European Union are ongoing and he believes the outcome will satisfy everyone. He also mentioned that new agreements with India, which will open up market access opportunities, will be announced soon.
