US President Donald Trump speaks at the Rose Garden Dinner at the White House in Washington, DC on September 2, 2026.
Brendan Smialowski AFP | Getty Images
President Donald Trump on Friday called on the Federal Reserve to lower interest rates or said he would cut off trade with countries with which the United States maintains trade deficits.
Following a much better-than-expected monthly jobs report, President Trump issued a sweeping ultimatum in a post on Truth Social, calling on the central bank and Chairman Kevin Warsh to “be smart” and cut interest rates.
Read Trump’s full post:
Great job numbers have been announced, exceeding all estimates (except mine!) by a factor of 2 and 3. And I haven’t seen anything yet. Employers added 162,000 jobs in August. U.S. credit is much stronger than it was a while ago, so lower interest rates. A strong country means lower interest rates – that’s better credit…very simple! It should be the lowest rate of any country in the world, just like in the “old days”. Unless the US agrees to recognize their huge surpluses, and we cannot stop it immediately, they will no longer be considered economically elite! Lower interest rates or we will stop trade with countries that are running deficits. In a ridiculous and extremely expensive tariff ruling, the U.S. Supreme Court strongly affirmed that the “President” has absolute rights. Better than tariffs! With great new leadership, the Fed Board has to be wise and be a patriot for change. High interest rates put the United States at a very unfair disadvantage, and I will not allow that to happen. President Donald J. Trump
The Fed declined to comment on Trump’s post.
If taken at face value, the threat of cutting off trade with deficit countries is extremely serious. The United States has large trade deficits with dozens of countries, including its major trading partners. The White House did not immediately respond to CNBC’s request for additional information about the post.
Nevertheless, the message signals that President Trump has resumed a pressure campaign on the Fed that he had eased since appointing Warsh, his handpicked successor to Jerome Powell.
The post comes two months before the midterm elections, when Americans’ dissatisfaction with persistently high inflation is a major theme.
President Trump has long called for lower interest rates and frequently complains about the U.S. deficit with other countries.
But a week earlier, Mr. Warsh suggested in a speech that rate hikes could soon be on the table. The Fed chairman said he is committed to bringing inflation back to the central bank’s 2% goal, and that “short-term interest rates are a key tool in achieving that dual mandate.”
Vice President J.D. Vance on Thursday called for lower interest rates, arguing that it would be an “appropriate and responsible” response to recent U.S. inflation figures.
Asked about interest rates on CNBC on Friday morning, National Economic Council Chairman Kevin Hassett said, “The Fed will do what it wants to do. We respect the Fed’s independence, but I think there will be a pretty strong case for keeping rates on hold.”
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