Hassett says Trump unlikely to halt trade over Fed rate dispute

September 13, 2026 at 11:28 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

National Economic Council Director Kevin Hassett said Sunday he does not expect President Trump to halt trade with deficit countries if the Federal Reserve declines to lower interest rates. Hassett told CNN's State of the Union that Trump holds a strong view rates could be lower, but the administration will wait for the Fed's decision. The comments follow Trump's August threat to stop trading with several countries unless the central bank cuts rates.

Key Facts

Kevin Hassett, director of the National Economic Council, said on CNN's State of the Union that he does not expect trade to go to zero over the Fed rate dispute.
President Trump threatened earlier in August to stop trading with countries with which the U.S. has a deficit if the Federal Reserve does not lower interest rates.
The U.S. economy added 162,000 jobs in August, far above the 53,000 predicted by economists, according to the Bureau of Labor Statistics.
Trump and Republicans face broader economic concerns including the Iran war's impact on oil and gas prices and recent trade tensions with Canada.

Hassett's Comments

Kevin Hassett, director of the National Economic Council, said on CNN's State of the Union that he does not expect trade to go to zero over the Fed rate dispute. Hassett told CNN's Jake Tapper that President Trump holds a very strong opinion that interest rates could be a lot lower. He added that the administration will wait and see what the Federal Reserve decides.

Trump's Rate Pressure

Earlier in August, President Trump pressed the Federal Reserve to lower interest rates following a stronger-than-predicted jobs report. Trump threatened to stop trade with several countries if the central bank did not lower rates. In a Truth Social post, Trump wrote that the U.S. is a much stronger credit than it was a short time ago and demanded lower rates or he would stop trading with deficit countries. The Bureau of Labor Statistics reported that American employers added 162,000 jobs in August, far ahead of the 53,000 predicted by economists.

Broader Economic Concerns

Despite the positive jobs numbers, Trump and Republicans face broader economic concerns surrounding the Iran war, which has raised oil and gas prices. Recent trade tensions with Canada also add to the economic pressures on the administration.