Trump Pressures Fed to Lower Interest Rates Amid Strong US Jobs Data

US President Donald Trump renewed his pressure on the Federal Reserve to lower interest rates after stronger-than-expected August jobs data increased expectations of a September rate hike. Employers added 162,000 jobs in August, exceeding forecasts and keeping the unemployment rate at 4.1%. The strong labor data boosted expectations for higher interest rates and lifted the US dollar.

Trump called on Fed Chair Kevin Warsh and other policymakers to lower borrowing costs, 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%. This marked a renewed pressure campaign against the central bank.

The strong jobs data also led to a decline in gold prices, as stronger employment data can reduce the appeal of non-yielding gold by increasing expectations for higher interest rates. Spot gold fell 0.79% to $4,437.61 an ounce and US gold futures for December delivery fell 1.35% to settle at $4,478.70.

Oil prices declined on Friday but remained on track for weekly gains of more than 6%. The market will now focus on next week's consumer and producer inflation data for further clues about the Fed's policy path.