Trump Demands Rate Cut, Threatens Trade Retaliation

President Donald Trump has called on the Federal Reserve to lower benchmark interest rates, citing a strong jobs report as evidence that the economy is performing well. In a series of posts on Truth Social, Trump argued that growth does not cause inflation and that the country's credit and economy are better than they were in the past.

Trump also warned that if the Fed doesn't lower interest rates, he will cut off all trade with countries that have a trade deficit with the United States. This threat was made in reference to a recent Supreme Court decision that acknowledged the President's authority to impose tariffs and engage in trade negotiations.

The Federal Reserve last raised interest rates in July 2023 and has kept them steady for the seventh consecutive time since then. However, three members of the Open Market Committee called for a hike to battle inflation after their latest meeting in July.