Trump Demands Rate Cut Amid Surging Inflation and Strong Jobs Report
President Donald Trump has threatened to cease trading with top partners unless the Federal Reserve lowers interest rates, stating that he 'has an absolute right' to do so. This move is in response to the recent jobs report, which showed a surprisingly hot economy with US employers hiring 162,000 new workers in August.
The strong report increases pressure on the Fed to hike interest rates to combat inflation concerns. The nation's annual inflation rate has jumped by a full percentage point to 3.4% since the war with Iran broke out in February, primarily due to rising gas prices.
Trump's threat comes after he repeatedly pressured former Fed Chair Jerome Powell to cut interest rates and even attempted to fire Fed Governor Lisa Cook over unproven allegations of mortgage fraud. The Supreme Court ultimately ruled that Trump did not have the authority to remove her.