Trump Threatens Trade War over Interest Rates

US President Donald Trump has threatened to cease trading with countries that have a trade deficit with America, unless their central banks lower interest rates. In a social media post on Truth Social, Trump expressed frustration over high domestic interest rates governed by the Federal Reserve, which he claims put the US at a 'very unfair disadvantage'.

Trump linked his statement to strong job growth numbers in August, where employers added an estimated 162,000 jobs across the country. He argued that a lower interest rate was called for given America's stronger economic position.

The President publicly called on Federal Reserve Governor Kevin Warsh and the central bank's board to 'get smart' and cut interest rates. This comes as the US economy will play a key role in the upcoming midterm election, with high inflation and housing costs feeding voter dissatisfaction with Trump and his party.