Washington, DC: US President Donald Trump has threatened to stop trading with countries that run trade surpluses with the United States unless the Federal Reserve lowers interest rates.
In a post on Truth Social, Trump argued that high US interest rates put the country at an unfair disadvantage. He called for the lowest interest rate in the world and urged Federal Reserve Governor Kevin Warsh and the central bank’s board to cut rates.
“We should have the LOWEST RATE of any country in the World, like “the old days.” Without the United States agreeing to allow them their big surpluses, and we could stop that immediately, they would no longer be considered financially ELITE! LOWER THE RATE OR I’LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT, which the U.S. Supreme Court, in its ridiculous and very costly Tariff decision, strongly acknowledged “the President” has an absolute right to do. IT’S BETTER THAN TARIFFS!,” Trump said.
His remarks came after August data showed US employers added 162,000 jobs.
Trump’s push for lower borrowing costs also comes ahead of the November 3 midterm elections, with economic conditions expected to be important for voters.
However, the Federal Reserve independently controls interest rates, despite Trump’s repeated criticism of its policy decisions.
