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United States President Donald Trump on Friday threatened to stop trading with countries with which the United States runs a deficit unless the Federal Reserve lowers interest rates, citing a strong August jobs report as justification for a rate cut.
“Great jobs number just announced, breaking all estimates (except mine!) by double and triple,” Trump said in a post on his Truth Social platform.
Trump called on the Federal Reserve to lower rates, arguing that stronger economic conditions justify lower borrowing costs.
“Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago!” he said.
“A strong country means a lower interest rate — it’s a better credit,” Trump added.
He also argued that the United States should have the world’s lowest interest rate, “like ‘the old days,’” and linked monetary policy to the country’s trade relationships.
“Lower the rate or I’ll stop trading with countries with which we have a deficit,” Trump said.
He criticized the Supreme Court’s recent tariff decision and said stopping trade with deficit countries would be “better than tariffs!”
“The Fed Board, with its great new leader, must get smart — be patriots for a change,” Trump said.
“High interest rates put the U.S.A. at a very unfair disadvantage, and I won’t allow that to happen!” he added.
In a later post on Truth Social, Trump expanded his criticism of the Federal Reserve, arguing that strong jobs data should have pushed stocks higher rather than triggering concerns about inflation.
He said the market was operating under a “False Reality” in which positive economic news was viewed as a reason to restrain growth through higher interest rates.
“Growth does not cause inflation!” Trump said.
He argued that the United States should aim for much faster economic expansion.
Trump said the country should be achieving annual gross domestic product growth of 15% or 20%, rather than rates of 2%, 3% or 4%.
He claimed stronger growth would allow the United States to address its debt and improve its financial position.
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