Trump Ramps Up Pressure on Fed After Strong Jobs Report Fuels Rate Hike Expectations

President Donald Trump is once again putting pressure on the Federal Reserve to lower interest rates. His latest effort comes after stronger-than-expected August jobs data showed US employers added 162,000 jobs, beating forecasts of just 53,000 new positions.

The unemployment rate remains at 4.1%, in line with expectations, but the strong labor market numbers have boosted expectations for a September rate hike by the Fed. Traders are now pricing in around a 60% probability of a hike, up from roughly half that earlier this week.

Gold prices fell sharply following the employment report as investors increased their bets on higher interest rates and a stronger US dollar. Spot gold dropped 0.79% to $4,437.61 an ounce and briefly dipped below 2% to an intraday low of $4,364.99.