President Donald Trump threatens to stop trading with foreign nations unless the Federal Reserve lowers interest rates
President Donald Trump stated on Friday that the United States could stop trading with countries where the U.S. maintains a trade deficit unless the Federal Reserve lowers interest rates. Speaking from the Oval Office and via social media, President Trump argued that success in economic growth does not cause inflation, contradicting the common economic view that the surprise gain of 162,000 jobs in August was a contributor to inflationary pressures. President Trump attributed the current high interest rates to U.S. government debt and stated that the economy could achieve growth rates of 12% to 15% if rates were lower. The administration announced that its policies, including artificial intelligence development and previous tariffs, are intended to boost productivity and factory work. While the administration's credibility on growth and inflation has been questioned by some economists, President Trump maintained that lower rates would lead to a record-breaking GDP. He also noted that the U.S. Supreme Court acknowledged the president's absolute right to stop trading with nations to address these deficits.
Sources
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Trump keeps heralding an economic boom, but even a solid jobs report is causing problems for him
Dallas News
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Trump says he will cease trading with top partners unless Fed lowers rates
cnn.com