Trump tells Fed to slash rates or he'll end trade with countries with U.S. surpluses
CNBC · 2026-09-04
President Donald Trump demanded that the Federal Reserve slash interest rates, threatening to cut off trade with countries where the U.S. maintains trade deficits if they do not comply. Trump issued this ultimatum in a Truth Social post reacting to a much-stronger-than-expected monthly jobs report for August, which showed 162,000 jobs added. He urged the central bank and its chairman, Kevin Warsh, to "get smart" and cut rates, despite Warsh recently suggesting that rate hikes might be necessary to bring inflation down to the 2% target. The Fed declined to comment on Trump's post, which comes two months before the midterm elections where high inflation is a key issue. Vice President JD Vance also called for lower rates, while National Economic Council Director Kevin Hassett acknowledged the Fed's independence.