U.S. President Donald Trump on Friday threatened to completely halt trade with countries running trade surpluses with the United States unless the Federal Reserve cuts interest rates.
Trump made the threat on social media in response to a stronger-than-expected monthly jobs report. The U.S. Labor Department reported Friday that the economy added 162,000 jobs in August, significantly higher than the projected 53,000, while the unemployment rate remained unchanged at 4.1 percent.
"LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT," Trump wrote, adding that high interest rates put the nation at a very unfair disadvantage.
The remarks could intensify tensions between the administration and the central bank, potentially threatening its independence. According to U.S. media reports, several voting Fed members, including Fed Chair Kevin Warsh, have recently signaled openness to interest rate hikes if inflation remains high.