Trump Demands Fed Cut Rates, Threatens Trade War if Not Complied
US President Donald Trump has issued an ultimatum to the Federal Reserve, calling for interest rates to be cut immediately. In a Truth Social post, Trump demanded that the Fed lower its key interest rate and warned of 'drastic action' if it fails to comply.
The threat comes after a strong jobs report, which saw traders increase their bets on a Federal Reserve interest rate hike by 11 percentage points to 60% as of Friday. However, President Trump has long been critical of the Fed's policies and has repeatedly called for lower rates.
Trump urged Fed Chair Kevin Warsh and the central bank's board to 'get smart' and be 'patriots for a change.' He also claimed that he has the 'absolute right' to halt trade with countries where the US runs a deficit, citing the Supreme Court as his authority.