President Trump once again called for an interest rate cut, stating that the Fed is moving slowly on matters. Trump emphasized that the U.S. earns billions of dollars weekly from tariffs and pointed out China’s increase in already high tariffs. Addressing the market decline, Trump stated, “I don’t want anything to go wrong, but sometimes you need medicine to fix something.” Following Trump’s tariffs, markets were in turmoil with record drops in assets like stocks and cryptocurrencies.

On the other hand, investors priced in an increased risk of recession due to tariffs and anticipated the Fed to cut rates starting from May. Expectations for five rate cuts of 25 basis points each in the U.S. this year have risen.