Trump Threatens Trade Cutoff Unless Fed Slashes Interest Rates

US President Donald Trump has reiterated his demand for lower interest rates from the Federal Reserve, threatening to halt trade with countries that run trade deficits with the US. In a post on Truth Social, Trump reacted to the stronger-than-expected monthly jobs report, calling on the central bank and its chairman, Kevin Warsh, to lower borrowing costs.

Trump emphasized that a strong country deserves low interest rates, stating 'A STRONG COUNTRY MEANS A LOWER INTEREST RATE - IT'S A BETTER CREDIT...Very simple! We should have the LOWEST RATE of any country in the World, like “the old days.”' He also threatened to stop trading with countries that run trade surpluses with the US, saying 'Without the United States agreeing to allow them their big surpluses, and we could stop that immediately, they would no longer be considered financially ELITE!'

The Federal Reserve declined to comment on Trump's post. The threat has far-reaching implications, as Washington maintains significant trade deficits with dozens of countries, including many of its largest trading partners.