Trump Threatens to Halt Trade Unless Fed Cuts Interest Rates

Donald Trump has threatened to stop trading with countries that contribute to a U.S. trade deficit unless the Federal Reserve lowers interest rates, escalating his criticism of the central bank.

“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,” Trump wrote on Truth Social, according to ANTARA. He also urged the Fed board to act “smart” and occasionally behave like “patriots.”

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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

In a later post, Trump argued that economic growth does not cause inflation. He said the belief that growth drives inflation had held back U.S. economic progress for 25 years. Trump said the country should be achieving GDP growth of 15% to 20%, rather than the 2% to 4% rates seen in recent years.

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smart

Trump also said the United States should be in a much stronger financial position and predicted that it would eventually pay off its debt, alongside improvements elsewhere in the economy. He said every one-point increase in interest rates costs the country $650 billion a year.

The article also recalls Trump’s criticism of former Fed Chair Jerome Powell for moving too slowly on rate cuts. It says Trump nominated Kevin Warsh as the new Fed chair in late January and that the U.S. Senate approved his appointment on May 13 for a four-year term. In late May, Trump said Warsh would lead a major modernization effort at the central bank while remaining fully independent in decision-making.

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patriots