Coin Bureau|Sep 04, 2026 15:30
Trump’s trade threat could BACKFIRE.🔥
President Trump is threatening to halt trade with countries running surpluses with the U.S. unless the Fed cuts rates.
Trump says lower rates would reduce borrowing costs and make the U.S. more competitive.
China, Mexico and Vietnam could be among the biggest targets.
If implemented:
- Supply chains could face major disruption.
- Import prices and inflation could rise.
- U.S. exporters could face retaliation.
- Stocks and crypto could see greater volatility.
- Economic growth could weaken.
Trade restrictions cannot directly force the independent Fed to cut rates, while higher inflation could keep rates elevated, producing the exact opposite of what Trump wants.
Potentially, making inflation WORSE.(Coin Bureau)
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