Trump steps up pressure on Fed to cut rates, threatens trade action
The Trump administration has intensified public pressure on the Federal Reserve to maintain or cut interest rates ahead of its September 15-16 meeting.
In the days leading up to the Federal Reserve's scheduled meeting on September 15 and 16, the Trump administration has ramped up its public pressure on the central bank to either maintain or reduce interest rates. President Donald Trump, along with Vice President J.D. Vance, Treasury Secretary Scott Besant, and economic adviser Peter Navarro, has been vocal in demanding that the Federal Reserve act on mixed inflation indicators and a robust labor market.
The administration's push for rate cuts or stability in rates marks a shift, as trade policy has not been previously tied to decisions made by the central bank. However, Trump's latest threats involve halting trade with nations that maintain trade surpluses with the United States unless the Federal Reserve takes action on interest rates.
This marks the first time in recent history that trade policy has been directly linked to central bank decisions. Unlike his previous criticism of Federal Reserve Chair Jerome Powell, Trump refrained from making personal attacks against current Federal Reserve Chair Kevin Warsh during this campaign. The pressure on the Federal Reserve is intensifying as markets remain keenly attentive to the bank's decision on interest rates amidst diverging trends in inflation and the US labor market.
Written by urgent.news from Ajel English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
