Trump Demands Fed Slash Rates, Threatens Global Trade Retaliation Against Deficit Nations
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In another reckless move, President Donald Trump took to Truth Social to pressure the Federal Reserve for lower interest rates and threatened to cut off trade with countries where the U.S. runs deficits, a stance that risks global economic turmoil.
President Donald Trump once again used his Truth Social megaphone on Friday to pressure the Federal Reserve into slashing interest rates, claiming the United States now has a stronger credit standing. Trump, disregarding the independence of the central bank, insisted that a 'strong country' deserves the lowest rates in the world and demanded that the Fed and its chairman, Kevin Warsh, act immediately to serve his political interests.
'Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago! A strong country means a lower interest rate – it’s a better credit…'
Not stopping there, Trump issued a thinly veiled threat to halt trade with nations where the U.S. runs a trade deficit, citing a Supreme Court decision he claims gives him such sweeping authority. Such a move would upend global supply chains and damage working people both in the U.S. and abroad. This comes on the heels of a jobs report showing 162,000 jobs added in August, a number Trump is likely to use to justify his erratic economic policies.
The White House declined to comment on Trump’s post. Economists warn that the U.S. maintains deficits with many major trading partners, and Trump’s proposed trade restrictions would have far-reaching negative consequences. These inflammatory remarks come just two months before the midterm elections, as Trump continues to scapegoat foreign nations and undermine economic stability for political gain.