Trump Demands Rate Cuts or Trade Halt from Federal Reserve
US President Donald Trump has issued an ultimatum to Federal Reserve Chairman Kevin Warsh, demanding that he cut interest rates or face severe economic consequences. Trump made his threat during a public address on Friday, where he boasted about the latest jobs numbers and claimed that high interest rates put the US at a disadvantage.
The President's comments follow a long history of pressure from the White House on the Fed to lower rates. In May, Warsh took over as Chairman after Jerome Powell's term expired, and Trump has repeatedly pushed for rate cuts despite the Fed's independence. The situation escalated when Trump threatened to criminally indict Powell for alleged lying to Congress about cost overruns at the Eccles building.
Despite this background, Warsh accepted the nomination and took the job as Chairman. However, reports suggest that he spoke with Trump on the phone at least three times during his first three months in office, sparking concerns about potential pressure on monetary policy decisions.
Trump's latest ultimatum is a stark warning to the Fed: cut rates or face severe economic consequences, including a halt to trade with countries running surpluses with the US. The President claimed that other countries rely on US financial support and would not be considered financially elite without it.