Trump Threatens Trade Deficit Nations: 'Lower Interest Rates or We Stop Trading'
US President Donald Trump threatened to cease trading with countries that have a trade deficit with America if the country's central bank does not lower interest rates. In a social media post, Trump expressed frustration over high domestic interest rates, which he believes place the US at a 'very unfair disadvantage'. The President claimed that the US should have the lowest interest rate in the world and called on the Federal Reserve to cut rates.
Trump's statement was linked to strong job growth numbers in August, with employers adding an estimated 162,000 jobs across the country. A lower interest rate, Trump argued, would be necessary given America's stronger economic position. The US President publicly called on Federal Reserve Governor Kevin Warsh and the central bank's board to 'get smart' and cut interest rates.
Trump's push for lower interest rates comes from his belief that reduced borrowing costs will spur economic activity, investment, and job creation ahead of the midterms. However, the US Federal Reserve retains independent authority to set interest rates.