Trump Threatens Trade Disruption Unless Fed Cuts Rates
US President Donald Trump has threatened to disrupt international trade unless the Federal Reserve lowers borrowing costs. In a Truth Social post, he stated that the US should have the lowest interest rates in the world.
Trump claimed that high interest rates put the US at an unfair disadvantage and argued that strict monetary policy hurts American competitiveness. He warned that he would weaponize trade policy if the Fed does not comply with his demands.
The president's threat targets countries with which the US runs a trade deficit, including Canada, Mexico, China, and European Union nations. This move puts hundreds of billions of dollars in daily business at risk and threatens supply chains for American consumers and manufacturers.