'Lower interest rates or...,' Trump turns up heat on hand-picked Fed chair Kevin Warsh, threatens trade shutdown

Trump Intensifies Pressure on Fed Amid Strong Jobs Report and Discussion of Interest Rates(REUTERS)AI Quick ReadPresident Donald Trump on Friday turned up the heat against the the Federal Reserve, including his hand-picked Fed Chair Kevin Warsh, over lowering interest rates, threatening to cut off trade with certain economies with which the US has a deficit if the central bank fail to act.

This comes amid the spectulation that Fed officials might raise interest rates at their next policy meeting starting 15 September. In a lenghthy social media post, the US President blasted Warsh and board members to “get smart” and “BE PATRIOTS for a change.” Pointing at stronger-than-expected August jobs report, he noted, “Great jobs number just announced, breaking all estimates (except mine!) by double and triple - And you haven’t seen anything yet!

EMPLOYERS ADDED 162,000 JOB IN AUGUST. Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago!” "A STRONG COUNTRY MEANS A LOWER INTEREST RATE - IT’S A BETTER CREDIT…Very simple!

We should have the LOWEST RATE of any country in the World, like “the old days.” “…LOWER THE RATE OR I’LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT,” he further threatened. The message shows that Trump is running out of patience with the Fed just months after Warsh took over from Jerome Powell, whom the president routinely attacked over the bank’s policy decisions.

He had resoanably pulled back the pressure campaign against the Fed after Warsh became chair, through his new post he revived his pressure tactics The president went even further than his top White House economic adviser, Kevin Hassett, who earlier Friday said that the jobs numbers strengthened the case to keep interest rates the same.

“We respect the Fed’s independence, but I think the argument for holding steady would be pretty strong,” Hassett said on CNBC. The jobs report showed nonfarm payrolls increased 162,000 last month and July’s job losses were revised away, suggesting the labor market has more momentum than previously thought.

Olu Sonola, head of US economics at Fitch Rating called the jobs report “unequivocally strong,” reaffirming the stability of the labor market. But, he added, “The real event risk is next week’s CPI report. That is the print capable of moving the needle.” The Bureau of Labor Statistics will release August data for the producer price index on Thursday, followed by the consumer price index on Friday.

With Fed officials concerned by persistently high inflation, but divided over how monetary policy should respond in the near term, new evidence of price pressures could tilt the Federal Open Market Committee into a rate hike.

Cooler reports are likely to keep the Fed on hold, as it’s been through five previous meetings this year. Sanchari Ghosh is an Assistant Editor at Mint with over 12 years of experience in journalism, specialising in personal finance, DLT & DeFi, geopolitics and foreign policy, with a particular emphasis on how these areas intersect.

She writes extensively about how money works in everyday life—helping readers navigate personal finance decisions. As AI reshapes investing behaviour, capital is increasingly flowing into decentralized ecosystems, redefining how assets are managed, traded, and valued.

She focuses on explaining how money flows within frameworks like Distributed Ledger Technology (DLT), DeFi protocols, and crypto markets—while also exploring what the future of money could look like in a trustless, programmable financial world.

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She closely tracks how geopolitical developments influence economies, markets, and individual financial choices, bringing together finance and global affairs in her reporting. She began her career as a desk editor, which gave her a strong foundation in news writing.

Over time, her interest naturally shifted toward personal finance. Before joining Mint in 2020, she worked DNA, The Times of India, Outlook Money, BloombergQuint, and ETMoney. At Mint, she got an opportunity to expand her coverage to include immigration and geopolitical developments while continuing to closely follow personal finance trends and market movements.As a journalist, she is committed to accuracy, intellectual rigour, and fairness.

She is an English Major and her work took her across cities including Delhi, Mumbai, and Pune. Living independently from an early age gave her firsthand experience in managing life and money on her own. This practical exposure sparked her strong interest in personal finance.

Outside the newsroom, Sanchari is a sports enthusiast who regularly plays lawn tennis and squash. In her younger years, she was also a national-level badminton player. Catch all the Business News , Economy news , Breaking News Events andLatest News Updates on Live Mint.

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