U.S. President Donald Trump on Friday threatened to stop trading with countries with which the United States runs a trade deficit unless the Federal Reserve cuts interest rates.
Trump, who has repeatedly pressured the Fed to lower borrowing costs, said high interest rates were putting the United States at an unfair disadvantage.
“We should have the LOWEST RATE of any country in the World,” Trump said in a post on Truth Social, adding that he would stop trading with countries with which the United States has a deficit if rates were not lowered.
His comments came after the U.S. Bureau of Labor Statistics reported stronger than expected job creation in August. The data prompted financial markets to increase expectations of a possible interest rate hike later this month.
The Federal Reserve has maintained that its interest rate decisions are guided by economic conditions, including inflation and employment, rather than political pressure.
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