Trump Tells the Fed to Cut Rates or He Will "Stop Trading" With Every Country the U.S. Runs a Deficit With — Ten Days Before a Meeting His Own Fed Chair Is Signaling Will Raise Them
On Friday, September 4, 2026, hours after a jobs report showed employers added 162,000 jobs in August, President Trump posted a Truth Social ultimatum telling the Federal Reserve to cut interest rates or he would cut off trade with every country that runs a surplus with the United States: "LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT." He told the Fed Board it "must get smart — BE PATRIOTS for a change." The threat capped an unusually broad week-long pressure campaign: Vice President JD Vance told a White House briefing on September 3 that it was "proper and responsible" for the Fed to lower rates; National Economic Council director Kevin Hassett said on September 4 that the administration "respect[s] their independence" but that the case for holding steady was "pretty strong"; and senior economic counselor Peter Navarro, in a Friday interview with Steve Bannon, called members of the rate-setting Federal Open Market Committee "clowns" and said a hike would be "careless." The target of the campaign is Trump's own hand-picked Fed chair. Kevin Warsh, confirmed in May 2026 in the closest vote in modern history, used his Jackson Hole speech in late August to say the Fed's focus needed to be squarely on inflation, and markets put the odds of a quarter-point hike at the September 15-16 meeting at roughly 60 percent. The meeting falls eight weeks before midterm elections in which polling shows widespread voter anger over prices — a frustration Sen. John Kennedy (R-La.) described on "Meet the Press" on September 6 as inflation "gutting people like a fish," while conceding his own party was unlikely to do anything about it before November.
“Except for inflation, which as I said, sucks, the economy’s solid.”