Trump tells Fed to slash rates or he'll end trade with countries with U.S. surpluses
President Donald Trump demanded that the Fed slash interest rates or else he will cut off trade with countries with which the U.S. maintains trade deficits.
TL;DR
- Donald Trump demanded the Federal Reserve cut interest rates.
- He threatened to cut off trade with countries with U.S. trade deficits if rates are not lowered.
- Trump believes high interest rates put the U.S. at an unfair disadvantage.
- The demand was made in a Truth Social post following a strong jobs report.
- The Fed declined to comment on Trump's statement.
- The threat is considered extreme as the U.S. has large trade deficits with many countries.
- This marks Trump's resumption of pressure on the Fed.
- The post comes two months before the midterm elections.
- Fed Chair Warsh recently suggested rate hikes might be necessary to combat inflation.