Trump Threatens Trade Freeze if Fed Doesn't Cut Rates

US President Donald Trump has issued an ultimatum to the Federal Reserve, threatening to halt trade with countries that have a deficit with the US unless interest rates are cut. In a post on Truth Social, Trump wrote: 'LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT.'

This move is an escalation of Trump's ongoing pressure on the Federal Reserve to lower borrowing costs. He has repeatedly criticized the central bank for keeping rates too high and wants them to be the lowest in the world.

The threat could disrupt commercial ties with US trade partners, particularly if implemented. The Federal Reserve sets interest rates based on its assessment of inflation, employment, and the overall state of the economy.