‘Lower The Rate Or I’ll Stop Trading’: Trump's Fresh Warning To Fed

US President Donald Trump on Friday threatened to stop trading with countries with which the United States runs a trade deficit unless the Federal Reserve lowers interest rates. He cited the strong August jobs report as justification for his demand.

Trump made the remarks in a post on his Truth Social platform, arguing that the US economy and its credit position have strengthened and that borrowing costs should therefore come down.

‘Lower The Rate Or I’ll Stop Trading’

Calling for an interest-rate cut, Trump wrote, “Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago!”

He then issued a direct warning, saying, “LOWER THE RATE OR I’LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT.”

Trump

has repeatedly called on the Federal Reserve to reduce interest rates during his second term.

Trump Says High Rates Put US At A Disadvantage

In another social media post, Trump said high interest rates put the United States at an unfair disadvantage.

“High interest rates put the U.S.A. at a very unfair disadvantage, and I won’t allow that to happen!” he wrote.

Trump said the United States should have the lowest interest rate of any country in the world.

August Jobs Report Cited As Reason For Lower Rates

The president also pointed to the August jobs report, which showed that US employers added 162,000 jobs during the month.

Trump argued that the stronger economy supports the case for lower borrowing costs and said the United States is now a much stronger credit than it was a short time ago.

Trump Cites Supreme Court Tariff Decision

Trump also claimed that the Supreme Court, in a recent tariff decision, acknowledged that the president has the authority to stop trading with countries with which the United States runs a deficit.

Fed Officials Signal Possible Rate Hike

Trump’s push for lower interest rates comes as multiple Federal Reserve officials have recently indicated the possibility of raising rates in the near term to address inflation.

The stance puts the president’s demand for lower borrowing costs at odds with officials who have pointed to inflation as a reason for potentially higher rates.