Former President Donald Trump on Friday called on the Federal Reserve to lower interest rates, citing a stronger-than-expected August jobs report. Trump stated on social media that employers added 162,000 jobs in August, exceeding estimates.
"Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago! A STRONG COUNTRY MEANS A LOWER INTEREST RATE – IT’S A BETTER CREDIT…Very simple!" Trump wrote on Truth Social. He asserted that the United States should have the lowest interest rates globally.
Trump also threatened to cease trade with countries that hold significant trade surpluses with the U.S. if the Federal Reserve did not adjust its interest rate policy. "LOWER THE RATE OR I’LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT," he stated, referencing a Supreme Court decision he believes supports the president's authority to take such trade actions.
He characterized these potential trade actions as preferable to tariffs and urged the Federal Reserve board, which he noted is led by his appointee Kevin Warsh, to be "patriots" and "get smart." According to Trump, high interest rates place the U.S. at an unfair disadvantage.
These remarks come amid expectations that the Federal Reserve board might maintain or increase interest rates due to ongoing inflation concerns. Trump's comments mark a new approach to influencing the central bank's monetary policy by linking it to international trade agreements.