Trump Threatens Trade Action Over Fed Interest Rates
President Donald Trump has threatened to take trade action against countries with which the US has a trade deficit if the Federal Reserve does not lower interest rates. This warning comes after a jobs report that showed a stronger-than-expected increase in employment, with 162,000 new jobs added in August, the highest mark since March.
The jobs report also revealed that the unemployment rate remained at 4.1 percent, and wages did not keep pace with inflation, reducing consumer purchasing power. National Economic Council Director Kevin Hassett attributed the positive numbers to Trump administration policies, citing the 'onsourcing' of production due to tariffs and the construction of new factories.
However, markets reacted negatively to the report, expecting it to lead to higher interest rates, which could negatively impact the stock market. Trump observed that good economic news often leads to a decline in the stock market, stating that 'the numbers are doing so good... watch the stock market will go down'.