Trump Threatens to End Trade With Deficit Countries
· World · CNBC, Times of India, The Independent
President Donald Trump on Friday demanded that the Federal Reserve cut interest rates, warning that he would otherwise halt trade with countries that run trade surpluses against the US. The ultimatum was delivered in a Truth Social post reacting to an August jobs report that showed employers added 162,000 positions, well above expectations. Trump urged Fed Chair Kevin Warsh to act, arguing the US is a stronger credit and deserves the lowest rate of any country. He cited a recent Supreme Court tariff ruling as confirming presidential authority to stop trade with surplus countries, framing the threat as preferable to tariffs.
Why it matters
A direct presidential threat to Fed independence and to trading partners with US surpluses raises the prospect of fresh trade disruptions and currency-market volatility. India is among the countries running a trade surplus with the US, putting bilateral exports and tariff policy in the line of fire.
Read the original report — CNBC
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.