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Trump tells Fed to slash rates or he'll end trade with countries with U.S. surpluses
CNBC • • business
Key Points:
- Former President Donald Trump demanded the Federal Reserve cut interest rates, threatening to halt trade with countries where the U.S. runs trade deficits if his demand is not met.
- Trump made the ultimatum in a Truth Social post following a stronger-than-expected jobs report, urging the Fed and its chairman, Kevin Warsh, to lower rates due to the country's improved credit strength.
- He argued that the U.S. should have the lowest interest rates globally, claiming high rates put the country at an unfair disadvantage and that cutting trade with deficit countries is preferable to tariffs.
- The threat is significant given the U.S. has large trade deficits with many major trading partners, and the White House has not provided further clarification on Trump's statement.
- This move comes ahead of the midterm elections, where inflation and economic concerns are key voter issues, continuing Trump's long-standing criticism of the Fed and trade deficits.
