Trump Presses Fed to Lower Interest Rates Amid Strong US Jobs Data
US President Donald Trump is once again putting pressure on the Federal Reserve to lower interest rates. This comes after the release of stronger-than-expected August jobs data, which shows US employers added 162,000 jobs in August, significantly exceeding forecasts.
The unemployment rate remained at 4.1%, in line with forecasts, and August recorded the strongest monthly employment increase since March. However, wage growth remained a concern, with average hourly earnings rising 0.3% in August and up 3.1% from a year earlier.
Trump called for lower interest rates on social media, saying 'LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT.' He also defended his threat to restrict trade with countries including Switzerland, Mexico and the European Union. The comments marked a renewed pressure campaign against the central bank.
The stronger jobs data increased market expectations for a September rate hike, with traders pricing in roughly a 60% probability of a hike. Gold prices fell sharply after the employment report, as stronger labor data boosted expectations for higher interest rates and lifted the US dollar. Spot gold fell 0.79% to $4,437.61 an ounce.