Trump steps up pressure on Fed to cut rates, threatens trade action
The Trump administration has intensified public pressure on the Federal Reserve to maintain or cut interest rates ahead of its September 15-16 meeting.
Key Takeaways
AIThe administration of US President Donald Trump has intensified its public pressure on the Federal Reserve less than two weeks before its anticipated meeting on September 15 and 16, calling for interest rates to be maintained or lowered amid mixed inflation indicators and a strong labor market.
Trump also threatened to halt trade with certain economies that run trade surpluses with the United States unless the Federal Reserve moves to cut interest rates, marking the first time trade policy has been directly linked to central bank decisions.
Joining Trump in the campaign were Vice President J.D. Vance, Treasury Secretary Scott Besant, and economic adviser Peter Navarro, who all called last week for rates to be cut or held steady, according to CNBC.
Trump escalated his pressure on Friday but refrained from launching a personal attack on Federal Reserve Chair Kevin Warsh, in contrast to his previous criticism of former central bank chief Jerome Powell.
The pressure comes ahead of the Federal Reserve's scheduled meeting on September 15 and 16, with markets closely watching the bank's decision on interest rates as inflation trends and US labor market performance continue to diverge.