Trump Threatens Trade Cut-Offs Unless Fed Lowers Interest Rates

President Donald Trump has threatened to cut off trade with countries that run surpluses with the U.S. if the Federal Reserve does not lower interest rates, according to a statement made on Truth Social.

The threat was made after the Bureau of Labor Statistics reported the U.S. added 162,000 jobs in August, indicating continued strength in the labor market.

Trump has long advocated for lower interest rates, but the strong jobs report makes rate cuts less likely, as it suggests that the economy is still growing strongly and may not need stimulus from lower interest rates.

The Federal Reserve aims to keep inflation at an annual rate of 2%, and with inflation currently at 3.4%, the Fed appears more likely to hold rates steady or potentially raise them rather than cut them.

Trump argued that a strong economy means lower interest rates, as it improves the country's creditworthiness. He also claimed that without allowing countries to run surpluses, they would no longer be considered financially elite and that stopping trade with deficit countries is better than tariffs.