NEW YORK, United States (US): US President Donald Trump on Friday threatened to completely stop trade with countries running trade surpluses with the US unless the Federal Reserve (Fed) cuts interest rates, reported Xinhua.
“LOWER THE RATE OR I’LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT,” Trump wrote in a social media post. “A STRONG COUNTRY MEANS A LOWER INTEREST RATE – IT’S A BETTER CREDIT.”
Trump made the threat in response to a stronger-than-expected monthly jobs report.
The US Labour Department reported on Friday that the US economy added 162,000 jobs in August, much higher than the expected 53,000 jobs added, and the unemployment rate remained unchanged at 4.1 per cent.
“High interest rates put the US at a very unfair disadvantage, and I won’t allow that to happen!” Trump said.
Trump’s remarks may intensify the tensions between the administration and the central bank and threaten the latter’s independence, as several voting Fed members, including Fed Chair Kevin Warsh, have signalled openness to a rate hike if inflation remains high, US media said on Friday. – BERNAMA-XINHUA
