Trump Threatens Trade Sanctions Over Fed Interest Rates
US President Donald Trump has threatened to stop trading with countries that have a deficit with the US unless the Federal Reserve lowers interest rates. He cited the strong August jobs report as justification for his demand, saying high interest rates put the US at an unfair disadvantage.
According to the Bureau of Labor Statistics, the US reported stronger-than-expected job creation in August, leading traders to boost bets on a hike later this month. Trump has repeatedly demanded that the Fed cut rates and has now threatened to stop trading with countries that have a deficit unless they do.
Fed Chair Kevin Warsh recently stated that inflation remains too far above the central bank's 2% target, at 3.7%, and added that without further progress, there would be 'work to do.'