President Donald Trump threatened on Friday to cut off trade with certain economies unless the Federal Reserve lowers interest rates, intensifying his campaign against the central bank in a lengthy social media post.
Trump said he would target countries with which the United States runs a trade deficit if Fed officials fail to act. He directed much of his pressure at the central bank he has repeatedly criticized, demanding steep cuts to borrowing costs.
The demand followed a stronger-than-expected August jobs report. The data could strengthen the argument for the Fed to hold rates steady rather than cut when policymakers begin their next meeting on September 15.
Trump has spent months pressing the Fed to deliver what he has described as the world’s lowest interest rates. His earlier statements praising possible chair contenders formed part of a broader effort to reshape the institution, as seen in his public praise for potential Fed leadership favoring aggressive cuts.
The Federal Reserve sets monetary policy independently of the White House. The president appoints its governors and chair, but the central bank determines interest rates through its policy committee without direct executive control.
Trade policy and monetary policy fall under separate authorities. Tariffs and trade restrictions sit with the executive branch and Congress, while the Fed’s mandate covers price stability and employment. Trump’s post linked the two, tying his trade threats directly to the Fed’s rate decision.
The comments add to a pattern of pressure on the central bank as it weighs its September decision. Fed officials have signaled caution in recent months, citing uncertainty over the effects of tariffs on inflation and growth.
The threat did not name specific countries or list which trading partners would be affected. Trump has previously singled out nations running surpluses with the United States as targets for tariffs and other measures.
The Federal Open Market Committee is scheduled to announce its rate decision on September 17, following the two-day meeting.