Trump Demands Rate Cuts Amid Strong Jobs Report
President Donald Trump has issued an ultimatum to the Federal Reserve, demanding rate cuts and threatening to halt trade with countries that run a trade deficit. The threat comes as the US economy shows signs of strength, with a stronger-than-expected August jobs report showing employers added 162,000 jobs last month.
Trump's post on Truth Social cited the strong jobs numbers as grounds for lower borrowing costs, arguing that a stronger economy justifies a better credit rating and therefore lower rates. The President directed his demand at the Fed and its chairman, Kevin Warsh, urging them to act in the country's interest.
The scale of the threat is significant, with the US running a total trade deficit of roughly $1.2 trillion with all partners last year. China accounted for the largest share at more than $200 billion, followed by Vietnam and Mexico.