Trump tells WEF as oil prices decrease, interest rates must come down

Trump said that he would pressure oil-producing nations to bring down the cost of oil around the word during his address to the World Economic Forum, something he said that would also end the war in Ukraine.

“With oil prices going down, I’ll demand that interest rates drop immediately. And likewise, they should be dropping all over the world. Interest rates should follow us,” he added.

Trump said that after he be spoke to the Saudi Crown Prince Mohammed bin Salman earlier this week, the leader in the country will be helping to bring down the cost of oil coming out of Saudi Arabia. “If the price came down, the Russia-Ukraine war would end immediately. Right now, the price is high enough that that war will continue,” Trump added.

If interest rates were to drop, it would directly impact the price of housing for many Americans, lowering the amount of interest on new mortgages for new home buyers as well as opening up opportunities to refinance for some home buyers. During the later portion of former President Joe Biden's term, the Fed was hesitant to bring down the interest rates in fears that it may inflate prices of consumer goods that already went up so high under former President Joe Biden.

If the price of oil goes down, however, this offsets the price of many goods, as transportation costs decrease for supply chain operations. In addition, a decrease in the interest rates would allow for businesses to have lower cost for investment.