Abstract:
U.S. President Trump put pressure on the Federal Reserve on Friday to significantly cut interest rates, and threatened to terminate trade with countries with which the United States has trade deficits if interest rates are not cut. In response to this monthly employment report that far exceeded market expectations, Trump issued this strongly worded ultimatum on Truth Social, urging the Federal Reserve and Chairman Kevin Warsh to "recognize reality" and lower interest rates.
On September 2, 2026, US President Donald Trump delivered a speech at the Rose Garden Dinner of the White House in Washington.
Trump social platform full text translation:
The employment data that just came out are very impressive, far exceeding all expectations - except my judgment! The actual data was two or three times higher than expected! The fun is yet to come! Employers added 162,000 jobs in August.
Interest rates should be lowered because America's credit credentials are much stronger now than they were not long ago! A strong country deserves lower interest rates, which represents better credit. The reason couldn't be simpler! We should have the lowest interest rates in the world, just like they did in the "good old days."
They wouldn't be financial powers at all if the United States hadn't allowed these countries to run huge trade surpluses - something we could stop immediately!
Either I cut interest rates, or I will stop trading with those countries with which we have trade deficits. In its absurd and costly tariff ruling, the U.S. Supreme Court also clearly recognized the president’s absolute authority to take such action. This method is more effective than imposing tariffs!
Now that the Federal Reserve Board of Governors has an outstanding new chairman, we must recognize the situation clearly and be a patriot. High interest rates put America at an extremely unfair disadvantage, and I will never allow that to continue!
President of the United States Donald J. Trump
The post marks a resumption of Trump’s pressure campaign on the Fed, which has eased since his handpicked successor as chairman, Kevin Warsh, took office in May.
Taken literally, the threat to cut off trade is very extreme: the United States has large trade deficits with many countries, including many of its top trading partners. The White House has not yet responded and provided no further explanation for the post.
There are still two months left before the U.S. midterm elections, and public dissatisfaction with continued high inflation is a core issue in this election. Trump has long advocated lowering interest rates and often complained about U.S. trade deficits with other countries.
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