WASHINGTON — President Trump on Friday pressed the Federal Reserve to cut interest rates after a stronger-than-expected August jobs report, even as many analysts expect the central bank to hold rates steady or raise them because inflation remains stubbornly high.
In a sharp escalation, Trump also warned that he could cut off trade with unnamed countries if the Fed refuses to follow his demand.
“Great jobs number just announced, breaking all estimates (except mine!) by double and triple – And you haven’t seen anything yet!” he wrote on Truth Social.
“EMPLOYERS ADDED 162,000 JOB IN AUGUST. Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago! A STRONG COUNTRY MEANS A LOWER INTEREST RATE – IT’S A BETTER CREDIT…Very simple!”
Trump continued: “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!”
The president’s threat to use trade policy adds a new source of pressure on the Federal Reserve board, which is now led by his appointee Kevin Warsh.
“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.
“IT’S BETTER THAN TARIFFS! The Fed Board, with its great new leader, must get smart – BE PATRIOTS for a change. High interest rates put the U.S.A. at a very unfair disadvantage, and I won’t allow that to happen!”
