Trump Demands Fed Cut Rates or Faces Trade Shutdown

US President Donald Trump has called on the Federal Reserve to lower interest rates, threatening to halt trade with countries that run a deficit against the US if they do not comply.

In a recent post on Truth Social, Trump argued that the US is now a stronger credit than it was in the past and should be able to operate at lower interest rates. He claimed that high interest rates put the US at an unfair disadvantage and asserted that a strong country means a lower interest rate.

Trump pointed to the latest employment report as evidence of a booming economy under his administration, stating that strong economic growth does not require strict policy. The report showed that the US added 162,000 jobs in August, far exceeding economists' estimates.

However, experts warn that halting trade with countries like China would lead to a supply freeze and a surge in inflation, putting significant pressure on the US economy. The US has trade deficits with many of its largest trading partners, including China, Mexico, and Vietnam, with a total deficit of approximately $1.2 trillion over the past three fiscal years.