U.S. President Donald Trump again pressured the Federal Reserve (Fed) to cut its benchmark interest rate immediately after August jobs data that far exceeded expectations was released. He warned that if rates are not lowered, the United States would halt trade with countries with which it is running trade deficits.
Trump said on the 4th (local time) on the social media platform Truth Social, "The employment figures just released beat every market forecast by two to three times, except for what I projected," and argued, "Lower rates, because the United States is far more creditworthy than just a short time ago."
He added, "A strong nation means lower interest rates," and "It means superior creditworthiness. Very simple."
Trump said, "We should, like in the old days, be getting the lowest interest rates of any country in the world," and "If the United States does not agree to let other countries run massive trade surpluses, and if we can stop this immediately, they will no longer be considered the financial elite."
He continued, "If rates are not lowered, I will halt transactions with countries with which the United States is recording trade deficits," and said, "The U.S. Supreme Court also strongly recognized in a very ridiculous and massively expensive tariff ruling that the 'president' has the absolute right to do so."
He also ramped up pressure on the Fed. Trump emphasized, "The Federal Reserve Board, led by a great new chief (Kevin Warsh), needs to get its act together," and "Be patriots." He added, "High interest rates put the United States in a very disadvantageous position. I will not let that happen."