Hassett on Trump trade war interest rates threat: ‘I don't expect the trade's going to go to zero’

President Trump’s warning of potential trade action if the Federal Reserve does not adjust monetary policy has drawn pushback from economic advisors, who emphasize the administration’s broader stance on interest rates. A top economic official dismissed the idea of a full-scale trade conflict, instead framing the president’s remarks as a reflection of his strong views on financial conditions. The comments highlight ongoing tensions between fiscal and monetary policy priorities, with trade policy serving as a key leverage point in the debate. Analysts will be watching whether the rhetoric translates into concrete measures or remains a strategic signal to influence Fed decisions.

Kevin Hassett, director of the National Economic Council, on Sunday played down President Trump's threat to begin a trade war if the Federal Reserve doesn’t drop interest rates. “I don't expect the trade's going to go to zero, but I do think that the president has a very strong opinion that interest rates could be...