Trump Threatens Trade Halt With Deficit Countries, Demands Fed Cut Rates

US President Donald Trump on Friday stepped up his pressure on the Federal Reserve to lower interest rates, saying the United States should have some of the lowest borrowing costs in the world and warning that he could halt trade with countries with which the US runs a trade deficit.

Trump made the remarks after the release of stronger-than-expected US employment data showing that employers added 162,000 jobs in August. He cited the figures as evidence of economic strength and argued that a stronger US economy should translate into lower interest rates.

In a post on social media, Trump urged the Federal Reserve to reduce borrowing costs, saying the US was in a stronger financial position than it had been previously.

Trump then escalated his criticism by linking interest rates to US trade policy. He warned that Washington could stop trading with countries where the US has a trade deficit if the Federal Reserve does not lower rates.

"We should have the LOWEST RATE of any country in the World, like 'the old days,'" Trump said, arguing that the US could withdraw access to its market for countries benefiting from large trade surpluses with America.

Trump also targeted the Federal Reserve's leadership, calling on the board and its new leader, Kevin Warsh, to lower borrowing costs. He argued that high interest rates were placing the US at an unfair disadvantage.

"The Fed Board, with its great new leader, must get smart - BE PATRIOTS for a change," Trump said. "High interest rates put the USA at a very unfair disadvantage, and I won't allow that to happen!"

Trump's comments come as financial markets reassess the Federal Reserve's next move following the latest jobs report. The stronger employment figures have increased expectations that the central bank could keep rates higher for longer, or potentially consider a rate increase, particularly as inflation remains above the Fed's target.

The remarks represent another escalation in Trump's long-running campaign for lower interest rates and add a trade-policy threat to his pressure on the central bank. His proposal to halt trade with deficit countries could have wider implications for US relations with major trading partners if pursued.

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