Trump threatens trade restrictions with 50% of US trading partners unless the Fed cuts rates by September 16th; market expects new Fed Chair Warsh to hike instead, creating a potential $300B+ monthly trade disruption.
Regulation & Gov ·
Trump called for lower interest rates, warning that he would restrict trade with countries running deficits with the US if his demand is not met, citing high rates as creating an unfair disadvantage for the country. The threat follows a stronger-than-expected August jobs report and represents pressure on the Federal Reserve to cut rates while simultaneously conditioning trade policy on monetary decisions.