Trump Pressures Fed Amid Stronger-Than-Expected Jobs Data
US President Donald Trump renewed his pressure on the Federal Reserve to lower interest rates after stronger-than-expected August jobs data boosted expectations of a September rate hike. The Bureau of Labor Statistics reported that US employers added 162,000 jobs in August, exceeding forecasts and keeping the unemployment rate at 4.1%.
Gold prices fell as stronger labor data increased expectations for higher interest rates and lifted the US dollar. Spot gold dropped 0.79% to $4,437.61 an ounce, while US gold futures for December delivery fell 1.35% to settle at $4,478.70.
Trump urged Fed Chair Kevin Warsh and other policymakers to lower borrowing costs in a social media post, saying 'LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT.' He argued that high interest rates put the US at a disadvantage and suggested a policy rate of 1% or even 0.5%, rather than the current level near 4%.