Trump Threatens to Halt Trade if Fed Doesn't Lower Rates

US President Donald Trump reacted to the hotter-than-expected August nonfarm payrolls report by threatening to halt trade with countries running trade surpluses with the US, unless the Federal Reserve lowers interest rates.

The U.S. economy added 162,000 jobs in August, nearly triple the consensus of 56,000, and July's reported loss of 23,000 was revised to a gain of 21,000.

Trump made his demand on Truth Social: 'Lower the rate or I'll stop trading with countries with which we have a deficit.'

The jobs report reduces arguments against hiking interest rates for the Federal Reserve, with economists like Jeffrey Roach and Peter Williams suggesting that a rate hike is increasingly likely at the September 16 FOMC meeting.