Trump demands Fed lower rates, reviving pressure campaign
President Donald Trump is intensifying pressure on the Federal Reserve to lower interest rates, threatening trade embargoes against countries with a US trade deficit if the Fed does not comply. Trump rejects the necessity of rate hikes to manage inflation, advocating for rates at or below 1% despite strong economic data.
Why it matters
This represents a significant challenge to the independence of the Federal Reserve and signals a potential shift toward aggressive protectionist trade policies.
US President Donald Trump rejected the idea that a hike in rates would reassure bond markets that are worried about debt and inflation.
President Trump demands the Federal Reserve lower interest rates, threatening to stop trade with countries where the US has a deficit if they don't comply. Trump criticises rising rates despite strong August jobs data and insists rates should be at or below 1%, rejecting Fed's potential rate hike. His renewed pressure on the Fed follows falling approval ratings and economic concerns ahead of midterm elections, contrasting with his economic adviser’s more cautious stance. AI generated
WASHINGTON – US President Donald Trump intensified pressure on the Federal Reserve to lower interest rates, threatening to cut off trade with certain economies which the US has a deficit if the central bank doesn’t act.
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