Trump pressures Fed on interest rates: Threatens to halt trade if no cuts

U.S. President Donald Trump has increased pressure on the Federal Reserve (Fed) to cut interest rates following the August employment data. In a post on the social media platform Truth Social, Trump stated that if the Fed does not lower interest rates, the U.S. could halt trade with countries with which it runs a deficit.

Trump described the reported data as "wonderful," noting that employers added 162 thousand new jobs in August. Arguing that the U.S. has a stronger credit rating compared to the recent past, Trump claimed that this situation necessitates lower interest rates.

"LOWER INTEREST RATES, OR I WILL HALT TRADE WITH COUNTRIES WE HAVE A DEFICIT WITH."

In his post, Trump also argued that the U.S. should have the lowest interest rates in the world, "just like in the old days." Stating that high interest rates put the U.S. at a disadvantage in global competition, Trump said he would not allow this.

Touching on the issue of tariffs and trade restrictions, Trump referred to Supreme Court rulings. Arguing that the court has accepted the president's authority to halt trade, Trump claimed that this step would be "better than tariffs."

Trump also called on the Fed Board of Governors to act "smart" and "patriotic" when making decisions. The statement once again brought interest rate policy and foreign trade tools to the center of political debate under the same heading.

News Source: 12punto