1 hr ago
Trump Pressures Fed for Rate Cut, Threatens Trade Halt
Donald Trump wants the Federal Reserve to lower interest rates.
He says the United States is financially strong and should have very low borrowing costs.
He pointed to a report showing that employers added 162,000 jobs in August.
The unemployment rate stayed the same.
Investors interpreted the strong jobs report as a reason the Federal Reserve might raise rates.
Trump warned that he could stop trading with countries that sell more to the United States than they buy.
His comments increased pressure on Federal Reserve Chair Kevin Warsh.
White House economic adviser Kevin Hassett instead said the jobs report supported leaving rates unchanged.
Donald Trump demanded that the Federal Reserve lower interest rates, arguing the United States is a stronger credit than before.
Trump warned he could halt trade with countries where the United States runs a trade deficit.
His comments followed an August jobs report showing 162,000 new nonfarm payroll positions and a steady unemployment rate.
Investors increased bets on a possible interest-rate hike at the Federal Reserve’s meeting beginning September 15.
Trump’s pressure campaign resumed after Kevin Warsh replaced Jerome Powell as Federal Reserve chair, while Kevin Hassett argued the jobs data supported keeping rates unchanged.
- Who
- United States President Donald Trump, Federal Reserve Chair Kevin Warsh, Federal Reserve officials, and White House economic adviser Kevin Hassett.
- What
- Trump demanded lower interest rates and threatened to halt trade with countries running trade surpluses with the United States.
- Where
- The United States and its trade relationships with deficit nations.
- When
- Friday; the Federal Reserve’s next policy meeting was reported as beginning September 15.
- Why
- Trump cited strong U.S. credit and August employment gains, while investors and Hassett drew different conclusions from the jobs report.
Trump’s Position
Rate-Hold or Hike Case
Interest-rate policy
Trump’s Position
Trump argues that the United States is a stronger credit and should have among the world’s lowest interest rates.
Rate-Hold or Hike Case
Investors increased bets on a rate hike, and Kevin Hassett said the strong jobs report supported keeping rates unchanged.
Trade response
Trump’s Position
Trump threatened to halt trade with countries with which the United States runs a deficit.
Rate-Hold or Hike Case
The articles do not report a response from the affected countries or the Federal Reserve to this threat.
Key facts
- August payroll gains
- Employers added 162,000 nonfarm jobs.
- Unemployment rate
- The rate held steady in August.
- Trump’s demand
- He urged the Federal Reserve to lower interest rates.
- Trade threat
- Trump said he could stop trading with countries with which the United States has a deficit.
- Next Fed meeting
- The meeting was reported as starting September 15.
- Investor expectations
- Investors increased bets on an interest-rate hike after the jobs report.
- White House adviser’s view
- Kevin Hassett said the jobs figures strengthened the case for keeping rates unchanged.
Quotes
Donald Trump
President of the United States who posted the remarks on social media
“Great jobs number just announced, breaking all estimates (except mine!) by double and triple - And you haven’t seen anything yet! EMPLOYERS ADDED 162,000 JOB IN AUGUST. Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago!”
livemint.com
“A STRONG COUNTRY MEANS A LOWER INTEREST RATE - IT’S A BETTER CREDIT…Very simple! We should have the LOWEST RATE of any country in the World, like “the old days.””
livemint.com
Sources
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