Trump Threatens Trade Halt Unless Fed Cuts Interest Rates

U.S. President Donald Trump has threatened to halt trade with countries that run deficits unless the Federal Reserve lowers interest rates, according to statements made via his social media platform, Truth Social. He also urged the Fed board to act like "patriots." Trump claimed that economic growth does not cause inflation and suggested that the U.S. should aim for a GDP growth rate of 15 to 20 percent instead of the current 2 to 4 percent.

He expressed hope that the U.S. would eventually pay off its debt and see improvements in other economic areas, emphasizing that each one-point increase in interest rates costs the country $650 billion annually. In late May, Trump proposed Kevin Warsh, a former Fed board member and White House economic adviser, to lead a major modernization effort at the central bank while remaining independent in decision-making.