Trump Threatens Trade Halt Unless Fed Cuts Interest Rates
US President Donald Trump has issued a warning to the Federal Reserve, threatening to halt trade with certain countries unless they lower their base rate. In a post on his Truth Social platform, Trump stated that if the Fed fails to ease its monetary policy, he will stop trading with countries that have a deficit.
The move is seen as an attempt by Trump to influence the Fed's decision-making process, which has been a point of contention between him and the central bank. The labor market in the US has grown stronger than expected, leading some economists to argue that lower interest rates are not necessary.
However, other experts have pointed out that a strong labor market can fuel wage growth and heighten the risk of inflation. In fact, inflation in the US has been above the Fed's 2% target for more than five years. Trump's comments come ahead of new inflation figures being published next Friday.