Trump's Interest Rate Power Play May Backfire Ahead of Midterms

President Donald Trump is at odds with the Federal Reserve over interest rates, just seven weeks before the November 3 midterm elections. Trump has repeatedly demanded lower interest rates to create a political advantage for himself.

The Federal Reserve's board will meet on September 15 and 16 to consider what to do about interest rates, and traders surveyed by CME Group's FedWatch Tool saw a better than 90% chance that the Fed will hike interest rates.

Trump's plan is not based on economic data, but rather on his desire for a political advantage. The U.S. Bureau of Labor Statistics reported that the consumer price index increased by 3.4% in the past 12 months, with gas prices driving the increase.

Trump has threatened to stop America from trading with countries that have trade deficits, which is currently 97 countries according to The Motley Fool. However, this threat is not a genuine attempt at economic policy-making, but rather an attempt to bully the Fed into lowering interest rates.