Trump Demands Lower Rates or Trade Threat

President Donald Trump has called for lower interest rates, linking his demand to a new trade threat. In a post on Truth Social, Trump said that high interest rates put the U.S. at an 'unfair disadvantage' in the global economy and urged the Federal Reserve to cut rates.

The President argued that a strong U.S. economy and credit profile should justify lower borrowing costs, adding that it would be 'better than tariffs' if countries with trade deficits were excluded from trading with the U.S.

Trump's comments came after the August jobs report showed 162,000 new jobs and an unemployment rate steady at 4.1%. He hailed the data as a 'great jobs number', saying it was 'breaking all estimates'. The President has been pushing for lower interest rates, claiming that a strong country deserves a lower interest rate.

The Federal Reserve, however, maintains that monetary policy decisions are based on its assessment of inflation, employment, and broader economic conditions rather than political demands. White House NEC director Kevin Hassett said the next major test will be the consumer price index (CPI) due next week, stating that if inflation continues to cool, the argument for holding steady would be 'pretty strong'.