Trump Threatens to Cut Off Trade with Countries with Surplus
US President Donald Trump has issued an ultimatum to the Federal Reserve, demanding that they slash interest rates or face severe trade consequences. In a Truth Social post reacting to a strong jobs report, Trump urged the central bank and its chairman, Kevin Warsh, to 'get smart' and cut rates.
The jobs report showed employers added 162,000 jobs in August, exceeding estimates. Trump argued that the US is a stronger credit than before and deserves lower interest rates. He also claimed that high interest rates put the country at an unfair disadvantage and threatened to end trade with countries that have large surpluses with the US.
The President has long sought lower interest rates and frequently complains about US deficits with other countries. This threat is extreme, as the US has significant trade deficits with dozens of countries, including its top trading partners.
Trump's message shows he is resuming his pressure campaign against the Fed, which had eased since Warsh's appointment. The White House did not immediately respond to CNBC's request for additional information on the post.