Donald Trump has defended the global market sell-off as a “medicine” for fixing the world economy. Speaking aboard Air Force One on his return to Washington from Mar-a-Lago — where he spent the weekend playing and, he claimed, winning the Senior Club Championship at his Jupiter golf club — the president dismissed accusations that the crash was deliberate.
“I don’t want anything to go down. But sometimes you have to take medicine to fix something” Trump told reporters. Later, on Truth Social, he denied orchestrating the turmoil, after sharing a video that was riddled with inaccuracies, that had suggested the White House’s tariff war was aimed at sinking markets.
His comments came just hours after top economic advisers warned on Sunday talk shows that no rescue from the tariff-driven sell-off was coming.
Global markets opened the week deep in the red. Tokyo’s Nikkei plunged 8.8%, hitting 30,792.74 — its lowest level since October 2023. All 225 index stocks were down. The broader Topix fell 8% to 2,284.69, while its bank sub-index nosedived 17.3%. European markets seem set for another heavy day.
Investors, who had spent the weekend hoping for a shift in tariff policy, appeared to throw in the towel, triggering a broad sell-off.
Trump strategy, meanwhile, is renewing pressure on the Federal Reserve. On Friday, he wrote: “This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates.”
Trump has repeatedly demanded the Fed — which is meant to be politically independent — slash rates since his first term.
But Powell, in remarks Friday, gave no sign he would comply. “While uncertainty remains elevated, it is now becoming clear that the tariff increases will be significantly larger than expected” he said. “The same is likely to be true of the economic effects, which will include higher inflation and slower growth.”
