Warren Buffet Reacts To Trump Post Alleging Investor Approved His Tariffs Before Announcement

US President Donald Trump recently shared a fan-made clip on Truth Social about a theory that he is letting the stock market crash with his sweeping tariff to compel the Federal Reserve to trim interest rates.

The theory said that the 'genius chess move' will cause the stock market to nosedive by 20% this month 'on purpose' to weaken the greenback and lower mortgage rates, enabling the US to refinance trillions worth of US debt 'very inexpensively.' Mortgage rates have already dropped since last week's 'Liberation Day' tariff announcements.

The video also claimed that the economic approach was backed by legendary investor Warren Buffett. However, the Oracle of Omaha quickly refuted the claims through his firm Berkshire Hathaway on Friday.

'There are reports currently circulating on social media (including Twitter, Facebook and TikTok) regarding comments allegedly made by Warren E. Buffett. All such reports are false,' according to a company statement.

Buffett also told CNBC that he wanted to bring down misinformation during an era when false rumours can spread like wildfire. The investor said he wouldn't comment on the situation related to the market, the economy, or tariffs until Berkshire Hathaway's annual meeting on 3rd May. He even described the tariffs as 'an act of war' last month and believes they would lead to higher prices for consumers.

US equities have lost over £8.52 trillion ($11 trillion) in value since 17th January, and almost £5.1 trillion ($6.6 trillion) of that was wiped out on Thursday and Friday alone. The past week's losses marked the biggest two-day loss of shareholder value ever recorded. While US markets have witnessed larger percentage drops, like the 25% decline in the latter half of 1929, but never as much in dollar terms.

The S&P 500 and Nasdaq were down almost 6%, while the Dow Jones fell by 5.5% at market close on Friday. China's decision to slap retaliatory tariffs on all US goods further bolstered the sell-off. The downfall of US equities is causing panic among Americans as their 401(k)s and IRAs already reflect the effects of this global trade war.

Trump Urges Fed Chair to 'Stop Playing Politics'

In a different post on his social media platform, Trump urged the Fed chair Jerome Powell to lower interest rates and 'stop playing politics.'

'This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always "late," but he could now change his image, and quickly,' he wrote. 'Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months - A BIG WIN for America.'

In response, Powell reverted by saying during an event in Washington, DC, that the economy faces a 'highly uncertain outlook with elevated risks of both higher unemployment and higher inflation.'

'While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent,' he said, adding that the tariff hikes 'will be significantly larger than expected,' and 'the same is likely to be true of the economic effects, which will include higher inflation and slower growth.'

Press Secretary Asks Wall Street to Trust The President

As the odds of a 2025 US recession jumped to over 60%, Trump's press secretary Karoline Leavitt said: 'To anyone on Wall Street this morning, I would say trust in President Trump.'

Trump said in another Truth Social post that 'big business is not worried about the Tariffs because they know they are here to stay, but they are focused on the BIG, BEAUTIFUL DEAL, which will SUPERCHARGE our Economy. Very important. Going on right now!!!'.

In a more recent post, he explained: 'We have massive Financial Deficits with China, the European Union, and many others. The only way this problem can be cured is with TARIFFS, which are now bringing Tens of Billions of Dollars into the USA. They are already in effect and a beautiful thing to behold. The Surplus with these Countries has grown during the "Presidency" of Sleepy Joe Biden. We are going to reverse it and reverse it QUICKLY. Some day, people will realize that Tariffs, for the United States of America, are a very beautiful thing!'

Some financial experts and investors, including Shark Tank's Kevin O'Leary, continue to believe that the market turmoil is temporary and that Trump has a solid plan.

'The world has changed, and the economic conditions have changed,' said Rick Rieder, chief investment officer of global fixed income at BlackRock.

As an escalating trade war drives speculations of an impending global recession, Michael Aron of State Street Global Advisors said that the 'Trump administration may be playing a game of chicken with trading partners, but market participants aren't willing to wait around for the results,' He added that 'investors are selling first and asking questions later.'