Trump says he will cease trading with top partners unless Fed lowers rates
President Donald Trump demanded that the Federal Reserve lower interest rates, threatening to halt trade with major partners where the United States maintains trade surpluses if the central bank refuses. Writing on Truth Social following an August jobs report, Trump argued that elevated interest rates place the United States at a disadvantage in the global economy and claimed that cutting off trade would be preferable to tariffs. The ultimatum ties monetary policy decisions directly to international trade strategy ahead of upcoming elections.
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- ✓ President Donald Trump demanded that the Federal Reserve lower interest rates or face a halt in trade with countries where the United States runs a surplus.
- ✓ Trump stated on Truth Social that high interest rates put the United States at an unfair disadvantage in the global economy.
- ✓ Trump made the demands following the release of an August jobs report.
- ✓ Trump asserted that ending trade with these nations would be better than tariffs.
What changed
President Trump issued an explicit ultimatum demanding Federal Reserve interest rate cuts backed by the threat of ending trade with nations where the U.S. runs a surplus.
Live updates
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Trump Demands Fed Rate Cuts Under Threat of Trade Halts
President Donald Trump demanded that the Federal Reserve lower interest rates, threatening to halt trade with major partners where the United States maintains trade surpluses if the central bank refuses. Writing on Truth Social following an August jobs report, Trump argued that elevated interest rates place the United States at a disadvantage in the global economy and claimed that cutting off trade would be preferable to tariffs. The ultimatum ties monetary policy decisions directly to international trade strategy ahead of upcoming elections.
Why it matters
The demand marks a severe escalation in tensions between the executive branch and the independent central bank over borrowing costs. Trump has repeatedly pressured the Fed to reduce rates despite institutional norms designed to protect monetary policy from political influence. Using trade surpluses and trade shutdowns as leverage represents an aggressive new tactic in his long-running public campaign against the central bank's leadership.
What is confirmed
- President Donald Trump demanded that the Federal Reserve lower interest rates or face a halt in trade with countries where the United States runs a surplus.
- Trump stated on Truth Social that high interest rates put the United States at an unfair disadvantage in the global economy.
- Trump made the demands following the release of an August jobs report.
- Trump asserted that ending trade with these nations would be better than tariffs.
Still unconfirmed
- The Daily Beast characterized Trump's Truth Social post as a deranged ultimatum in an all-caps meltdown.
What to watch next
- Any official response from the Federal Reserve or its leadership regarding the interest rate demands.
- Further policy announcements or trade actions from the Trump administration concerning trade surpluses.
confidence 95%Sources used for this update (8)
- CNBC — Trump tells Fed to slash rates or he'll end trade with countries with U.S. surpluses
- CNN — Trump says he will cease trading with top partners unless Fed lowers rates
- WSJ — Trump Lauds Jobs Report, Says the Fed Should Lower Rates
- The Daily Beast — Trump Fires Off Deranged Ultimatum in All-Caps Meltdown
- theguardian.com — Trump threatens to halt trade with some countries unless the Federal Reserve lowers interest rates – US politics live
- seekingalpha.com — Trump demands Fed rate cuts or threatens trade shutdowns
- www.upi.com — Trump: Trade cut with some nations if Fed doesn't lower rates
- finance.yahoo.com — Trump Says ‘Lower The Rate’ Or US Will Stop Trading With Deficit Countries — ‘It’s Better Than Tariffs’
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