Trump Threatens Trade Cuts if Fed Doesn't Lower Rates
US President Donald Trump has issued an unprecedented warning to the Federal Reserve and global trade partners. In a post on his Truth Social platform, he threatened to halt all trading with countries that have a surplus with the US unless interest rates are lowered at the upcoming Fed meeting.
The move comes after the Department of Labor reported 162,000 new jobs in August, exceeding analysts' expectations. Trump argues that the strong economy justifies lower interest rates and claims the US should have 'the lowest rate of any country in the world.'
He also stated that trade partners benefiting from significant surpluses with the US only hold that status because Washington allows it. The President implied that he could swiftly change this situation, saying 'if the U.S. chose not to allow them their large surpluses, something we could halt immediately, they would no longer be considered financial elites!'
This threat is directed at new Fed Chair Kevin Warsh, who has taken a more conservative stance than his predecessor. Trump demands that the institution act 'smartly' and be 'patriotic.'