Trump: Will demand Saudi Arabia and OPEC to lower oil prices, Federal Reserve should quickly cut interest rates
U.S. President Trump stated at the Davos World Economic Forum that he would ask Saudi Arabia and OPEC to lower oil prices and plans to request the Federal Reserve to reduce interest rates. He mentioned that the Saudi Crown Prince confirmed plans to expand investment and trade with the U.S. over the next four years, targeting $600 billion, potentially reaching $1 trillion. Trump believes that lowering oil prices would help end the Russia-Ukraine war and indicated he would exert pressure on the Federal Reserve to lower interest rates
According to the Zhitong Finance APP, U.S. President Donald Trump stated on Thursday at the World Economic Forum in Davos that he will ask Saudi Arabia and OPEC to lower oil prices, after which he will "demand" a reduction in interest rates.
Before Trump's remarks about Saudi Arabia, the Saudi official news agency reported on Wednesday that Crown Prince Mohammed bin Salman had a phone call with Trump. The news agency stated: "His Royal Highness confirmed that Saudi Arabia intends to expand its investment and trade with the United States over the next four years, with a scale reaching $600 billion, and possibly even exceeding that figure."
Trump stated: "I will ask the Crown Prince to increase the investment scale to about $1 trillion. I think they will do it because we have always been good to them. I will also ask Saudi Arabia and OPEC to lower oil prices." "If prices come down, the Russia-Ukraine war will end immediately. Right now, oil prices are high enough to keep this war going. You have to lower oil prices to end the war. They should have done this a long time ago. In fact, to some extent, they bear a lot of responsibility for what is happening."
It is worth mentioning that Trump threatened on Wednesday to impose tariffs and sanctions on Russia if it does not reach an agreement to end the war in Ukraine. During his campaign, Trump stated that if he were in office, he would resolve the Russia-Ukraine conflict within 24 hours. Trump pointed out, "I hope Russia and Ukraine are working towards a peaceful solution," while comparing the death toll from the conflict to that of World War II.
Additionally, Trump stated that he launched his first strong attack on the Federal Reserve on Thursday, saying he would exert pressure to demand lower interest rates. He did not name the Federal Reserve but clearly indicated that he would seek lower rates. Trump stated: "As oil prices fall, I will demand an immediate reduction in interest rates. Similarly, interest rates around the world should also decrease; they should follow our lead."