Trump threatens trade cutoff if Federal Reserve does not slash interest rates
President Trump demanded an immediate interest rate cut from the Federal Reserve, linking it to his power to halt trade with countries running surpluses.
US President Donald Trump issued a public ultimatum on Friday, demanding that the Federal Reserve slash interest rates or he will cut off trade with nations where the U.S. maintains deficits. Trump posted this threat on Truth Social after citing a jobs report where employers added 162,000 jobs in August. He stated that the United States is a stronger credit than before and argued a strong country deserves the lowest interest rate in the world. Trump claimed the White House has an absolute right to stop trading with surplus countries without needing Supreme Court approval, dismissing previous tariff decisions. The Federal Reserve Board responded by urging central bankers to lower rates quickly. Meanwhile, market analysts note that U.S. Treasury yields have risen roughly three-quarters of a percentage point over the past six months. Currently, the 10-year Treasury yield hovers near 4.8%. These investors view Trump's administration policies as factors keeping bond yields higher, contrary to efforts to bring them down.
