‘Without the United States, everything in the world would die’: Trump’s argument for Fed rate cut

US President Donald Trump on Tuesday made a sweeping statements about the United States’ global and economic dominance, saying that “without the US, everything in the world would die.”

His remarks were part of a broader pitch to justify a Federal Reserve interest rate cut, as he painted the US as the engine of global stability and growth.

Speaking to reporters in the Oval Office on Tuesday, Trump pointed to what he described as significant economic growth during his first term, claiming, “I made it really big in the first four years, then it started to degenerate with what this Biden administration did.”

He also credited tariffs with strengthening the country’s financial position, saying, “The money coming in is enormous because of tariffs and other things — but mostly because of tariffs. Tariffs bring us even those other things.”

Last month, Federal Reserve Chair Jerome Powell offered a cautious signal that interest rate cuts could be on the horizon, citing significant uncertainty that continues to complicate the Fed’s decision-making process.

“With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” Powell said during his annual speech at the Jackson Hole symposium in Wyoming.

Although he did not directly respond to calls from the White House for rate reductions, Powell emphasised the importance of maintaining the Federal Reserve’s independence in setting monetary policy.

Meanwhile, describing the US as “the hottest” and “the best financially,” Trump renewed criticism of India’s trade policies during a press briefing on Wednesday.

Citing Harley-Davidson as an example, Trump accused India of imposing “tremendous tariffs, about the highest in the world,” in contrast to what he claimed were minimal trade barriers for Indian goods entering the US market.

“They would send in massive, you know, everything they made, they’d send it in, pour it into our country. Therefore, it wouldn’t be made here, which is a negative. But we would not send in anything because they were charging us 100% tariffs,” he said.

Trump added that while India had offered to reduce tariffs, “it’s getting late.”

He also reiterated his earlier claim of playing a key role in conflict resolution.

“I settled seven wars, and numerous of those wars were because of trade,” he added.

Trump had previously claimed to have intervened in six conflicts over a six-month period, including a near “nuclear disaster” involving India and Pakistan.

“If you look at Pakistan and India, planes were being knocked out of the air. Six or seven planes came down. They were ready to go, maybe nuclear. We solved that,” he said earlier this month.

With inputs from agencies