President Trump issued an ultimatum threatening to halt trade with countries running U.S. deficits unless the Federal Reserve cuts interest rates. The Fed is expected to conclude its two-day meeting on Wednesday with a decision that may raise rates, not lower them, despite the president’s demands. This latest move intensifies the ongoing feud between Trump and the central bank, raising concerns about the Fed’s political independence.

Trump has previously attacked Fed members and attempted to fire some, now leveraging international commerce to influence monetary policy. White House officials, including Kevin Hassett, have tried to balance praise for new Fed Chair Kevin M. Warsh with criticism of other members, while downplaying inflation concerns.

Trump posted on social media demanding the “LOWEST rate of any country in the World,” warning he would stop trading with deficit countries if rates aren’t cut. If enacted, the threat could severely impact U.S. trade and the economy. Hassett stated he doesn’t expect trade to drop to zero but acknowledged Trump’s strong belief that rates should be lower.

The outcome remains uncertain as the Fed prepares to announce its decision.