Fed Rate Hikes on Hold as Trump Pressure and Midterms Weigh In
A recent jobs report showing stronger-than-expected growth has raised hopes for a rate hike by the Federal Reserve, but Wharton finance professor Jeremy Siegel says this is unlikely due to pressure from the 2026 midterm elections and President Donald Trump.
The August jobs report showed that the US economy added 162,000 jobs, more than triple the recent monthly average. Unemployment held steady at 4.1%, and wage growth stayed at 3.1% year over year. Siegel called it a supply-driven labor market, not an overheating one.
However, Trump has repeatedly pressured the Fed to cut rates this year, saying 'We should have the LOWEST INTEREST RATES of any country in the World … CUT INTEREST RATES OR I WILL STOP TRADING WITH COUNTRIES WHERE WE HAVE A DEFICIT.'