Trump threatens, “If the Fed doesn’t cut interest rates, the U.S. will stop trading with countries running deficits.”
Published on HivePostify by @yann03 · Sat Sep 05 2026
>The Fed continues its blatant pressure…"It will be better than customs duties." Observation that this is part of intensifying pressure on Chairwoman Weiss ahead of the FOMC
>[Herald Economy=Reporter Yang Dae-geun] On the 4th (local time), U.S. President Donald Trump threatened, saying, "If the Federal Reserve (Fed) does not cut interest rates, the United States will stop trading with countries running deficits."
> On that day, President Trump wrote on the social media site Truth Social, “Amazing employment data was just released,” and urged, “Since America’s credit has strengthened, interest rates should be lowered to the lowest level in the world.” As the strong U.S. employment data strengthened the possibility of a rate hike, it appears that he openly pressured the Fed to cut rates, even mentioning the extreme measure of halting trade with countries with trade surpluses with the U.S. President Trump said, “If (the Fed) does not lower interest rates, we will stop trading with countries running deficits,” and claimed, “The Supreme Court strongly affirmed in its foolish and expensive tariff ruling that ‘the president has absolute authority to do so.’” He added, "This will be better than customs." However, President Trump did not specifically mention countries with trade deficits. President Trump said, “The Federal Reserve Board, with such a great trusted leader, must be wise,” adding, “High interest rates expose America to very unfair disadvantages, and I will not allow this to happen.”
It is analyzed that it remains unclear whether President Trump’s remarks were actually intended with the implementation of a trade halt in mind, or merely meant to increase pressure on the Federal Reserve. The U.S. CNBC pointed out, "If taken literally, the threat to cut trade with countries running deficits is extreme," adding, "The United States runs large trade deficits in dozens of countries, including its major trading partners." The New York Times (NYT) pointed out that "if President Trump goes ahead with it, it would be a powerful ultimatum that would deal a major blow to the economy."
Meanwhile, last month’s U.S. employment situation improved more than expected. Nonfarm jobs increased by 162,000 from the previous month, marking the largest increase in the past five months. As employment growth appears stronger than expected, the market seems to be giving more weight to the view that the Fed will raise interest rates this month. 양대근 [email protected]
Although it shows a strong concern about interest rates, There is no way to know whether this is sincere.
The employment situation should rather be seen as leaning toward an interest rate hike.
If there’s no increase in September, and with elections coming up, the limit is about one increase by the end of the year. We’ll have to wait and see what stance the Fed will take.
Tags: #leofinance#waiv#kr#life#diary