Trump Threatens Trade Embargo Unless Fed Cuts Interest Rates

US President Donald Trump has threatened to stop trade with countries that cause the US to have a trade deficit if the Federal Reserve (The Fed) does not lower interest rates. In a post on his social media platform, Truth Social, he urged the Fed to immediately cut interest rates to boost US economic growth.

Trump emphasized that every one percentage point increase in interest rates could cost the country up to $650 billion a year. He also criticized the assumption that economic growth triggers inflation, stating that this has hindered the progress of the US economy for about 25 years.

Trump's pressure on the Fed is not the first time he has expressed his dissatisfaction with the central bank's policies. He has frequently criticized the interest rate cut as being too slow and has nominated Kevin Warsh as the new Fed chairman, who was approved by the US Senate in May.