Posted on 09/04/2026 7:25:48 AM PDT by Miami Rebel
President Donald Trump on Friday demanded that the Federal Reserve slash interest rates or else he will cut off trade with countries with which the U.S. maintains trade deficits.
Trump issued the sweeping ultimatum in a Truth Social post reacting to a much-stronger-than-expected monthly jobs report by urging the central bank and its chairman, Kevin Warsh, to “get smart” and cut rates.
Read Trump’s full post:
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.” Without the United States agreeing to allow them their big surpluses, and we could stop that immediately, they would no longer be considered financially ELITE! LOWER THE RATE OR I’LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT, which the U.S. Supreme Court, in its ridiculous and very costly Tariff decision, strongly acknowledged “the President” has an absolute right to do. IT’S BETTER THAN TARIFFS! The Fed Board, with its great new leader, must get smart - BE PATRIOTS for a change. High interest rates put the U.S.A. at a very unfair disadvantage, and I won’t allow that to happen! President DONALD J. TRUMP
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Just because the fed lowers the interbank rate does not mean that commercial rates go down. The bank margins would go up even further than they are now. Commerical lenders are already increasing rates because they can, because the economy is in fact strong in spite of all Trump has done.
This war is no less a trumped up action than LBJ’s Gulf of Tonkin incident or Bush’s weapons of mass destruction threat. Trump knows this, he knows he got sucked into it on February 28. He admitted as much several times in early June when he realized what a corner he is in and began to back peddle. This was maybe the first time he did so in the horrible interview with Welker who was inflammatory and he eventually walked out. Starting at about the 12 minute mark he says that the nuclear material is buried and only we or the chicoms can reach it and that if they tried to get at the material we would know immediately and stop them just as quickly. So why have we been fighting again since February 28?
https://www.youtube.com/watch?v=zYmQctYXIeM
The job of preventing a nuclear Iran was done in the summer of ‘25 during the bombing raids of Midnight Hammer. We did that once and we could do it again. Whatever else has been done since was not to prevent Iran getting nuclear weapons, it has been about missiles and now Hormuz. The claim of nearly 500 kilos of 60% material made to Kushner and Walsh in negotiations in late February of ‘26 was a bluff or boast. Trump took that bait and led us to the continuing war we are in now.
Welker was intentionally provocative and it worked. She got Trump mad enough to leave. Frankly, I would have punched her in the face long before Trump left but hey, I’m not a politician.
You can shoot the messenger but here is a montage of Trump saying the nuclear material is inaccessible, in other words, Iran no longer has a nuclear capability program and claiming to prevent that is what this has all been about since February 28 is misleading. The twist is, once stopped they can start again at any time until they are stopped over and over and over again. The only way to control the regime of Iran is to be there stopping them and no occupying force has ever done that successfully.
The brilliant part now is to get out of the mess that was started on false pretenses or a mistake at best.
Ref. interest rates, it would absurd to lower rates now when inflation is the bigger threat now, not unemployment—ref. Warsh’s recent Press Conference comments.
Data does not include what the presidents plans like wars, trade wars, etc?
And they constantly have 20% of their arms remaining.
i do not disagree, but the rising rates cause bond markets to decrease and seniors including me see our longer term portfolio to drop.
As far as inflation, I have built my retirement plan to do well in moderate inflation so I am somewhat agnostic to what the Fed does.
It also let’s us swap out $40trillion in debt
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