Trump Demands Fed Lower Interest Rates or Face Trade Halt
US President Donald Trump has threatened to halt trade with countries that cause a US deficit unless the Federal Reserve lowers interest rates. In a post on Truth Social, Trump stated that he would stop trading with these countries and urged the Fed board to act 'smart' and occasionally like patriots.
'LOWER THE RATE OR I’LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT,' Trump said, referencing the US Supreme Court's decision on tariffs. He claimed that economic growth does not cause inflation and that the notion of this has hindered U.S. progress for 25 years.
Trump expressed his dissatisfaction with current GDP growth rates of 2 to 4 percent and stated that the country should be achieving 15 to 20 percent growth instead. He added that the US should eventually pay off its debt and experience improvements in other areas of the economy. Furthermore, he stated that every one-point increase in interest rates costs the country $650 billion per year.