Trump Again Pressures Fed for Rate Cut, Threatens to Halt Trade With Deficit Nations

U.S. President Donald Trump reiterated on the 13th (local time) that if the U.S. central bank, the Federal Reserve (Fed), does not lower interest rates, he will have no choice but to halt trade with certain countries where the U.S. runs a deficit.

While markets are closely watching the possibility of a Fed rate hike based on oil prices and the Consumer Price Index (CPI), Trump is seen as ramping up pressure for a rate cut by once again mentioning the extreme measure of trade suspension.

In addition, observations suggest that if the Fed actually raises rates, Trump may resort to high-intensity pressure against countries running trade surpluses with the U.S., wielding not only tariffs but also the card of trade suspension.

Speaking to reporters at an airport just before departure to head home following his visit to Ireland, Trump was asked whether he actually intends to carry out the trade suspension threat he made on social media platform Truth Social on the 4th. He responded, "Yes, I will do that with a few countries."

"I have no choice. We don't want to run deficits with other countries. We want to run surpluses or at least see a balanced trade balance," he emphasized, adding, "But previous presidents have allowed massive deficits, and we will not tolerate it."

"So I will do it. This will happen over a period of time," Trump added.

Trump previously called for a rate cut ahead of the Fed's Federal Open Market Committee (FOMC) meeting scheduled for the 15th to 16th, stating on Truth Social on the 4th, "If they don't lower rates, we will halt trade with countries where we are running a deficit."

However, as recent fed funds futures markets heavily price in the possibility of a Fed rate hike at this FOMC, attention is focused on whether Trump's remarks today will lead to the actual implementation of the extreme measure of halting trade with specific countries.

Regarding a circulating video showing New York City Mayor Zohran Mamdani and U.S. Representative Alexandria Ocasio-Cortez (D-N.Y.), often called an icon of progressivism, smiling at each other during the 25th-anniversary commemoration of the September 11 terrorist attacks held at New York City's Ground Zero on the 11th, Trump criticized it, saying he thought it was "terrible."

"That is not a place to be laughing, especially at a time like that," he pointed out, adding, "The fact that they were smiling at each other during a very important part of the ceremony is inappropriate."

Regarding a request from a woman who lost her husband in the 9/11 attacks asking him to bring about justice regarding Saudi Arabia's role during 9/11 at the memorial service, Trump said he would review releasing more records after returning to Washington.

Earlier, the U.S. Central Intelligence Agency (CIA) released a massive trove of government classified documents related to al-Qaeda and its leader Osama bin Laden on the 11th, the 25th anniversary of the 9/11 terrorist attacks.

Trump also drew a line regarding the repeal of tariffs on Irish whiskey announced on this day, clarifying that it would apply only to Irish whiskey, not the entire European Union (EU).

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.