As stock markets tumble again, Trump calls for a cut to interest rates
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What are the main topics covered in this podcast episode?
You're listening to the Global News Podcast from the BBC World Service. Hello, I'm Oliver Conway. This edition is published in the early hours of Saturday, the 5th of April. President Trump calls for a cut in interest rates, but the head of the US central bank suggests that won't happen as trillions of dollars are wiped off global markets. Ukraine says a Russian missile strike has killed 16 civilians in President Zelensky's home city. And the best-selling video game Minecraft hits the cinema screens. Also in the podcast, the Tanzanian diet that can boost the immune system.
In the morning for breakfast, used to have a millet porridge and sorghum porridge as well. For lunch, a banana with beans.
And does a whiff of power surround the French president? When he announced his new tariffs earlier this week, President Trump called it Liberation Day. Critics said Liquidation Day would have been a better name and investors continue to dump stocks on Friday. Some financial markets recorded their worst falls since Covid.
Why does Trump want to cut interest rates?
During the day, China announced it would match the 34% additional tariffs imposed by the US, sparking fears of a global trade war. Donald Trump said China played it wrong, they panicked, and he would never change his policies. But he did make a plea for the US central bank to cut interest rates. The response from Jerome Powell, chairman of the Federal Reserve, suggested that would not happen.
Tariffs are highly likely to generate at least a temporary rise in inflation. It's also possible that the effects could be more persistent. Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem.
Jerome Powell talking to business journalists. I asked our business correspondent Mark Ashtown why the president was pushing for a cut in interest rates.
Windrush has been obviously the big issue as America and the rest of the world has grappled with inflation. Obviously, we had hugely high inflation post the Russian invasion of Ukraine, energy bill spikes, that sort of thing, which makes life very painful for everyone. So I think Donald Trump, they're looking for... some help, really. If interest rates were to come down, that would help everyone in their pockets. That would help businesses as well. It makes money cheaper to borrow as well. But the chair of the Federal Reserve, Jerome Powell, has always been very circumspect on this. He's very careful with the language he uses. He won't want to stoke any inflationary issues. I think he also reflected there
He was a bit worried about the size of these tariffs, even took them by surprise. So I think, yeah, as ever, Donald Trump wants fast-moving responses, but Jerome Powell, the sort of polar opposite, really. It's slow and steady. They will take all the data, analyse it and work out the path from there.
How are tariffs affecting the global markets?
Now, investors and traders also appear to have been surprised by the scale of the impact of this. Just take us through what's been happening on the market. I think so.
Well, pretty much as soon as Donald Trump got his massive card out with his tariff menu, there was a fall in US stocks. That continued. We had a massive drop off on all stocks on Wall Street yesterday. Overnight, Asian indexes lost ground, European indexes as well. I mean, the FTSE, for example, the 100 biggest companies in London, now trading at lows not seen for over a year.
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Chapters
5 chapters
1
What are the main topics covered in this podcast episode?
0:38–1:49
2
Why does Trump want to cut interest rates?
1:49–3:27
3
How are tariffs affecting the global markets?
3:27–6:45
4
What is the impact of Russian missile strikes in Ukraine?
6:45–11:49
5
What is the situation in Turkey regarding anti-government protests?
11:49–33:15