Donald Trump threatened to shut down trade with countries running a deficit against the US if the Federal Reserve doesn't slash interest rates. He pointed to the latest August jobs report, saying employers added 162,000 new jobs.

What Trump Wants from the Fed

Trump is pushing for a rate cut, arguing the US is now a “much more reliable borrower” and that a “strong country” should have the lowest borrowing costs. In his words, America “should have the lowest rate of any country in the world.”

Trade Threats and His Arguments

He said he's ready to cut off trade with countries where the US runs a deficit, calling it “better than tariffs.” Trump also claims the Supreme Court has backed the president's authority to take such action on tariffs.

Why He’s Saying This Now

Trump called the new jobs data “fantastic,” saying the numbers “beat all forecasts by two and three times.” He addressed the Fed Board of Governors directly, arguing that high rates put the US at a disadvantage compared to other countries, and urged the regulator to take action.