Trump Issues Trade Ultimatum to Fed: Cut Rates or Face Global Consequences
US President Donald Trump has issued an ultimatum to the Federal Reserve, threatening to halt trade with countries where the US runs a deficit unless interest rates are cut. The move comes as the Fed's September 16 meeting approaches, with markets increasingly pricing in a rate hike.
The August jobs report showed stronger-than-expected growth, with employers adding 162,000 jobs and unemployment holding at 4.1%. However, Trump's stance on interest rates remains at odds with market expectations, which are now favoring a rate increase.
Trump's threat to stop trading with countries where the US runs a deficit, including major partners such as Mexico, China, and Canada, has significant economic implications. The US goods deficit reached $1.24 trillion in 2025 alone, making this a major concern for investors.