Trump Threatens Trade Embargoes if Fed Doesn't Lower Rates
US President Donald Trump has intensified pressure on the Federal Reserve to lower interest rates. He made his demands in a social media post after a stronger-than-expected August jobs report, which could bolster the case for Fed officials to raise rates at their next policy meeting starting September 15.
In his post, Trump called on hand-picked Fed Chairman Kevin Warsh and board members to 'get smart' and 'BE PATRIOTS for a change'. He threatened to cut off trade with certain economies that have a deficit with the US if the central bank does not act. Trump claimed this authority after the US Supreme Court struck down his previous tariff regime.
The President's post read: 'LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT.' He argued that high interest rates put the US at a disadvantage and said he wouldn't allow it to happen. However, it remains unclear how such an action would help lower US borrowing costs.