Trump threatens to halt trade with deficit countries unless Fed slashes interest rates

President Trump escalated pressure on the Federal Reserve after a strong August jobs report, posting on Truth Social that he would stop trading with any country with which the U.S. runs a deficit unless the central bank lowered borrowing costs. He invoked a Supreme Court ruling on presidential tariff authority to claim an 'absolute right' to impose such trade embargoes and exhorted Fed Chair Kevin Warsh and board members to 'get smart' and 'BE PATRIOTS for a change.' The threat caused a brief dip in stock futures, and economists warned that halting trade with dozens of nations would harm American families and businesses, while a rate cut could worsen inflation. The pressure campaign comes as Trump seeks to boost the economy ahead of the 2026 midterm elections. The threat marked a resumption of Trump's campaign against Fed independence despite having installed his own chair.

“LOWER THE RATE OR I’LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT” Quote verified against source