Trump Threatens to Halt Some Trade Unless the Fed Cuts Rates

President Trump threatened on Friday to halt a broad swath of U.S. trade unless the Federal Reserve slashed interest rates, issuing a series of sweeping ultimatums that could prove costly to the economy if he were to carry it out.

The Fed is a politically independent institution, and it has long kept rates steady as it tries to tame years of persistent inflation. Mr. Trump’s demand risked undermining that work, all the while choking off commerce in ways that could harm American families and businesses.

The president delivered his threat on a day that began on a positive note for the White House. Newly released hiring figures showed that employers added about 162,000 jobs in August, evincing a labor market that has successfully weathered a range of shocks under Mr. Trump — from the global trade war he commenced last year to the war with Iran that has intensified recently.

On social media, Mr. Trump heralded that development, before seizing on the employment figures to issue new demands. He called on the Fed to reduce borrowing costs to “the LOWEST RATE of any country in the World.”

Article source: https://www.nytimes.com/2026/09/04/business/economy/trump-trade-threats-fed-rate-cuts.html