Trump’s threat to stop trade unless there’s a rate cut risks shock to U.S. economy
Economists and other analysts offered criticism Friday after President Donald Trump floated the idea of stopping trade with countries that have a trade surplus with the U.S. if the Federal Reserve doesn’t lower interest rates.
US President Donald Trump has threatened to halt trade with countries that have a trade surplus with the US if the Federal Reserve doesn't lower interest rates. This statement was made after a stronger-than-expected US jobs report, which showed 162,000 jobs added in August and an unemployment rate of 4.1%.
Trump has been critical of high interest rates, stating they put the US at a "very unfair disadvantage". According to The Economic Times, he also said the Fed "must get smart" and be "patriots".
The idea of stopping trade with countries with which the US has a trade deficit was met with criticism from economists and analysts, who warned it could risk a shock to the US economy, as reported by MarketWatch.
Brief written by urgent.news from MarketWatch Top, The Economic Times - Top News, Times of India — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.
