Trump Warns Fed: Cut Rates or Face Trade Freeze
President Donald Trump has issued an ultimatum to the Federal Reserve, threatening to halt U.S. trade unless interest rates are cut. This move risks undermining the Fed's efforts to tame inflation and could harm American families and businesses.
The president delivered his threat on a day that saw hiring figures show employers added about 162,000 jobs in August, evincing a labor market that has weathered recent shocks. Trump heralded this development before seizing on it to issue his demands for lower borrowing costs.
Trump called on the Fed to reduce rates to 'the LOWEST RATE of any country in the World', despite policymakers considering whether to raise rates as soon as this month. The president insisted that the U.S. economy is 'STRONG' and can afford to lower borrowing costs, but such a move could worsen inflation.
The list of countries with which the United States has a trade deficit is lengthy, including its neighbors Canada and Mexico, nations in the European Union, and others including China. Trump threatened to interrupt global trade if rates are not cut, citing his 'absolute right' as president.