Trump demands that the Federal Reserve cut interest rates

Donald Trump has threatened to stop the United States from trading with various countries unless the Federal Reserve lowers its policy interest rate, adding pressure to a central bank that has not responded publicly.

Trump issued the threat in a post on Truth Social. “CUT THE RATES OR I WILL STOP TRADE WITH COUNTRIES THAT WE ARE RUNNING A TRADE DEFICIT WITH,” he wrote, while arguing that a recent U.S. Supreme Court tariff decision had strongly recognized the president’s authority to act. He also urged the Federal Reserve’s leadership to show common sense and patriotism.

U.S. policy rates currently stand at 3.5% to 3.75%, and there are indications they could rise at the next rate decision, according to the report. The threat concerns numerous countries with which the United States runs trade deficits, including its largest deficits with China, Mexico and Vietnam.

The Federal Reserve has not yet responded. Kevin Warsh recently became its chair, and Trump described him as friendly toward the president. Trump told reporters that he had spoken with Warsh, but it was not clear what they discussed.

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CUT THE RATES OR I WILL STOP TRADE WITH COUNTRIES THAT WE ARE RUNNING A TRADE DEFICIT WITH, which the United States Supreme Court, in its ridiculous and very costly tariff decision, strongly recognized the President has the absolute right to do.