Trump Threatens Trade Freeze Unless Fed Cuts Interest Rates
US President Donald Trump has threatened to stop trading with countries that have a deficit with the US unless the Federal Reserve (Fed) cuts interest rates. This move is in response to the strong August jobs report, which saw job creation exceed expectations.
The Bureau of Labor Statistics reported a stronger-than-expected job creation in August, prompting traders to boost bets on a hike later this month. Trump has repeatedly demanded that the Fed cut rates, saying 'High interest rates put the U.S.A. at a very unfair disadvantage, and I won't allow that to happen!'
Trump posted on his Truth Social platform, stating that the US should have the 'LOWEST RATE of any country in the World' and warned that he would stop trading with countries with which they have a deficit if rates are not lowered. The current inflation rate is 3.7%, according to the Fed's preferred measure, which remains above the central bank's 2% target.