Mr. Trump threatened to stop trade with many countries if the Fed did not reduce interest rates

On September 4, the US Bureau of Labor Statistics announced August employment data in this country. Accordingly, businesses created 162,000 new jobs – higher than forecast.

Immediately after this information, President Donald Trump praised on the social network Truth Social that these were “great” figures and not beyond his expectations. He continued to call on the US Federal Reserve (Fed) to lower interest rates because “America now has a much higher credit rating”. “A strong country means interest rates must be lower. We should have the lowest interest rates in the world like we used to,” he explained.

The US President also mentioned trade issues. He said that maintaining a trade surplus with the US has put many countries in a good financial position. Therefore, he called: “Lower interest rates or I will stop trading with countries where we have deficits.”

CNBC consider this an extreme move. The US currently has a trade deficit with dozens of countries, including its leading trading partners.

This message also shows that Mr. Trump is restoring his campaign to pressure the Fed. This has cooled down since Kevin Warsh – the person nominated by Mr. Trump to succeed Mr. Jerome Powell – was appointed to the position of Fed Chairman.

Mr. Trump’s article appears in the context of two months until the midterm elections in the US. People in this country are increasingly dissatisfied with persistent high inflation, especially after the war in the Middle East.

Mr. Trump has long expressed his desire to lower interest rates and frequently complains about America’s trade deficit with other countries. On September 3, Vice President JD Vance also called for lowering interest rates, saying this would be an “appropriate and responsible” response to recent US inflation figures.

However, last week, Warsh signaled that the Fed may soon consider raising interest rates to bring inflation back to its 2% target. The Fed will have a policy meeting in mid-September.