President Donald Trump has threatened to halt trade with countries that run a deficit with the United States unless the Federal Reserve lowers interest rates. As reported by CNN, the threat came in a post on his Truth Social account. The move follows a series of public statements from Trump criticizing the central bank’s current rate policy.
In the post, Trump argued that halting trade with deficit countries would be more effective than imposing further tariffs, citing a recent Supreme Court ruling on tariffs that he said confirmed a president’s authority to take such action. He wrote, “BE PATRIOTS for a change,” referring to the Fed board under its newest leadership.
Trump also raised his frustration with the Fed’s rate policy while speaking to reporters in the Oval Office earlier in the week. He called the idea of raising rates “ridiculous,” saying, “success in growth does not cause inflation.” He argued that inflation stems from other causes.
The threat lands as fresh jobs data complicates the Fed’s next move
The pressure on the Fed comes as the labor market shows resilience. Employers added 162,000 jobs in August, more than double what many economists had projected, according to the jobs report released Friday morning. Following the data, the odds of a rate cut at the Fed’s upcoming meeting rose to 60 percent, up from 49 percent the day before, per CME FedWatch.
The Federal Reserve’s two-day policy meeting is scheduled to begin on September 15. Fed Governor Michael Barr said this week he would support a rate hike if inflation data fails to show progress toward the bank’s 2 percent target, while Governor Chris Waller said he remains open to a similar move if inflation does not slow.
Trump’s frustration centers partly on the size of the US trade deficit, which reached $1.2 trillion across all trading partners in 2025. The largest gap was with China, exceeding $200 billion, followed by sizable deficits with Mexico and Vietnam. Trade tension has already reached consumers, as the US Canada trade war has begun pushing up prices on some household goods.
Data from the U.S. Bureau of Economic Analysis shows the 2025 goods and services deficit totaled $901.5 billion, a slight decrease from $903.5 billion in 2024. Exports rose to $3,432.3 billion while imports climbed to $4,333.8 billion over the same period. The administration has floated other economic relief measures in recent months, including Trump’s farm aid request to help offset rising fuel and fertilizer costs for farmers.
The Fed has declined to comment on Trump’s latest remarks. The Consumer Price Index report for August is scheduled for release next Friday, ahead of the central bank’s September meeting.
Published: Sep 4, 2026 11:30 am