RATE-CUT ULTIMATUM: CUT, OR TRADE ENDS WITH DEFICIT COUNTRIES

🔴 162,000 jobs in August, and within hours the Fed had an ultimatum on its desk.

President Donald Trump posted Friday that the Federal Reserve must cut interest rates or he will stop trading with countries the U.S. runs trade deficits with, according to CNBC.

His reasoning: a stronger economy makes the U.S. a better credit, so it should borrow cheaper. He wrote that the U.S. should have "the LOWEST RATE of any country in the World."

CNBC points out how sweeping the threat is if taken at face value. The U.S. runs large trade deficits with dozens of countries, including its top trading partners.

The White House did not immediately respond to CNBC's request for more detail on the post.

The timing matters because the Fed is pointing the other way. A week earlier, Chair Kevin Warsh said in a speech that rate hikes could soon be on the table, that he is committed to getting inflation back to the 2% target, and that short-term rates are the predominant tool for the dual mandate.

Others in the administration are pushing the same direction as the post. Vice President JD Vance called for lower rates on Thursday. But National Economic Council Director Kevin Hassett told CNBC on Friday morning that "the Fed will do what it wants to do. We respect their independence," adding that the case for holding steady looked strong.

CNBC notes the post lands two months before the midterm elections, with unhappiness over high inflation a dominant theme.

So: should a strong jobs number mean lower rates, or higher ones?

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