Trump would plunge the US into crisis if he carried out his latest bizarre threat
Donald Trump has threatened to halt trade with countries that have trade surpluses with the US unless the Federal Reserve lowers interest rates. Economists warn that such a move would be economically illiterate and could trigger a severe recession.
Why it matters
The threat highlights the potential for extreme economic volatility and institutional conflict if Trump's unconventional trade policies were implemented.
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Share A A A Last Friday, Donald Trump threatened to stop all trade with countries that have trade surpluses with the US ... unless the US Federal Reserve Board cuts interest rates.
It is doubtful whether Trump has the power to carry out that threat or whether the Fed would take any notice of it. He also doesn’t appear to appreciate that, if he were able to do what he threatened to do, the US would almost certainly be plunged into recession, if not depression.
Donald Trump has shown off his erratic character and economic illiteracy once again. Bloomberg Trump posted the bizarre threat on Truth Social (naturally) after payroll numbers showed a better-than-expected number of jobs were added in August.
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