US President Donald Trump has demanded that the Federal Reserve cut interest rates, threatening to halt trade with countries with which the United States runs trade deficits, CNBC reports.


Trump issued the sweeping ultimatum in a post on Truth Social, reacting to a stronger-than-expected monthly jobs report and calling on the central bank and its chairman, Kevin Warsh, to lower borrowing costs.


“Great jobs number just announced, breaking all estimates (except mine!) by double and triple - And you haven’t seen anything yet! 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! 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! 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. 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!” Trump wrote.


The Federal Reserve declined to comment on Trump’s post.


Taken at face value, Trump’s threat to halt trade with countries running trade surpluses with the United States would have far-reaching implications, as Washington maintains significant trade deficits with dozens of countries, including many of its largest trading partners. The post marked a renewed escalation in Trump’s pressure campaign on the Federal Reserve, which had eased following the appointment of Warsh as his handpicked successor to Jerome Powell.


Trump has long advocated lower interest rates and has repeatedly criticized the United States’ trade deficits with other countries. His latest comments come two months ahead of the midterm elections, with persistent inflation remaining a major concern for American voters.


However, just a week earlier, Warsh suggested in a speech that interest-rate increases could soon be considered. The Fed chair said he remained committed to bringing inflation back down to the central bank’s 2% target.


“Short-term interest rates are the predominant tool to achieve the dual mandate.”


Vice President JD Vance also called for lower interest rates, arguing that such a move would be the “proper and responsible” response to recent US inflation data.


Meanwhile, National Economic Council Director Kevin Hassett, when asked about interest rates, said: “the Fed will do what it wants to do. We respect their independence, but I think the argument for holding steady would be pretty strong.”


By Vafa Guliyeva