Trump Demands Fed Cut Interest Rates Amid Strong Jobs Report
US President Donald Trump has issued an ultimatum to the Federal Reserve, urging it to cut interest rates or face potential trade restrictions. In a post on his Truth Social platform, Trump reacted to a stronger-than-expected monthly jobs report by calling for lower borrowing costs.
'Great jobs number just announced, breaking all estimates (except mine!) by double and triple,' Trump said. He argued that the US economy is in a stronger position now than it was recently, and therefore warrants lower interest rates.
Trump emphasized that 'a strong country means a lower interest rate, it's a better credit.' He also suggested that the US should have the world's lowest interest rate, comparing it to the past when borrowing costs were more favorable. Trump linked monetary policy to trade relationships, warning that Washington could take further trade measures against countries with which the US runs a deficit.
'Be patriots for a change,' he urged. 'Lower the rate or I'll stop trading with countries with which we have a deficit.' Trump's statement comes days after Federal Reserve Chairman Kevin Warsh said inflation remains too high, despite a resilient economy.