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

On Sunday, Kevin Hassett, who leads the White House National Economic Council, addressed President Trump's recent suggestion that he might launch a trade war if the Federal Reserve does not cut interest rates. Hassett sought to play down the prospect that the administration would carry out that kind of action in response to Fed policy. Hassett said he did not foresee trade tensions reaching an extreme endpoint and noted that the president has a strong view about where interest rates should be. His comments framed the president's remarks as a forceful opinion on monetary policy, while indicating he did not expect them to translate into maximal trade measures. The exchange stems from the president's public linkage of trade actions to the Fed's interest-rate decisions. Hassett's remarks were presented as reassurance that, despite the president's stated willingness to use trade policy against the Fed, an all-out trade escalation was not anticipated. No additional specifics about potential policy moves or how the administration would act were provided in Hassett's comments as reported, and the statement did not detail any concrete steps or timelines related to trade or monetary policy.