Trump's Rate Cut Threat Sparks Economic Warning from Peter Schiff

President Donald Trump has called for lower interest rates and threatened to halt trade with countries running trade surpluses against the U.S. if the Federal Reserve does not cut rates. This move has drawn warnings from veteran investor Peter Schiff, who claims it could 'crash the US economy'.

Schiff argued that disrupting the flow of goods into the U.S. would send prices and unemployment soaring due to a shortage of goods. Trump's threat came after August's jobs report showed the U.S. added 162,000 jobs, nearly triple the 56,000 consensus estimate.

Jim Cramer also questioned how the Fed would handle this situation, particularly with new Chairman Kevin Warsh. He noted that it will be 'intriguing' to see how Warsh deals with Trump's demands, which he described as 'ill-advised.'