There are still ten days until the Federal Reserve's interest rate meeting to review interest rate hikes, and the Trump administration is putting pressure on all sides to try to prevent this rate hike from being implemented. Over the past week, the President, Vice President, Minister of Finance, and senior economic advisers to the president have publicly urged the Federal Reserve not to raise interest rates, and some officials directly requested interest rate cuts. Even judging by Trump's past standards for criticizing the Federal Reserve for a long time, the scale of this public pressure is rare. Trump did not directly criticize the new Federal Reserve Chairman Walsh as he did with former Chairman Powell, but on Friday he further escalated the pressure and threatened that if the Federal Reserve did not cut interest rates, the US would stop trading with countries with trade surpluses with the US. This is the first time Trump has directly coerced the Federal Reserve into cutting interest rates through trade. Earlier this week, Vice President Vance stated: “We think the Federal Reserve should lower interest rates.” He added, “We have taken many steps to lower interest rates. If the Federal Reserve can help, that would certainly be great.” Treasury Secretary Scott Bessent mentioned in an interview that according to the Federal Reserve's past practice, when faced with a supply shock, interest rates are generally not raised unless inflation has a transmission effect two or three times.

There are still ten days until the Federal Reserve's interest rate meeting to review interest rate hikes, and the Trump administration is putting pressure on all sides to try to prevent this rate hike from being implemented. Over the past week, the President, Vice President, Minister of Finance, and senior economic advisers to the president have publicly urged the Federal Reserve not to raise interest rates, and some officials directly requested interest rate cuts. Even judging by Trump's past standards for criticizing the Federal Reserve for a long time, the scale of this public pressure is rare. Trump did not directly criticize the new Federal Reserve Chairman Walsh as he did with former Chairman Powell, but on Friday he further escalated the pressure and threatened that if the Federal Reserve did not cut interest rates, the US would stop trading with countries with trade surpluses with the US. This is the first time Trump has directly coerced the Federal Reserve into cutting interest rates through trade. Earlier this week, Vice President Vance stated: “We think the Federal Reserve should lower interest rates.” He added, “We have taken many steps to lower interest rates. If the Federal Reserve can help, that would certainly be great.” Treasury Secretary Scott Bessent mentioned in an interview that according to the Federal Reserve's past practice, when faced with a supply shock, interest rates are generally not raised unless inflation has a transmission effect two or three times.