Trump Threatens Trade Halt Unless Fed Cuts Interest Rates

US President Donald Trump has threatened to halt trade with countries running trade surpluses with the US unless the Federal Reserve (Fed) cuts interest rates. In a social media post, Trump wrote that 'a strong country means a lower interest rate, it's a better credit.'

The threat comes in response to the stronger-than-expected monthly jobs report released by the US Labour Department on Friday. The economy added 162,000 jobs in August, much higher than the expected 53,000 jobs added, and the unemployment rate remained unchanged at 4.1 per cent.

Trump's remarks may intensify tensions between the administration and the central bank and threaten the latter's independence. Several voting Fed members, including Fed Chair Kevin Warsh, have signalled openness to a rate hike if inflation remains high.