Trump Threatens Trade Action Over Fed Interest Rates

President Donald Trump has threatened trade action against countries with which the US has a trade deficit if the Federal Reserve does not cut interest rates.

The threat was made on Truth Social following a jobs report that most economists believe will encourage the Fed to increase interest rates in an effort to curb inflation.

The US added 162,000 jobs in August, doubling most economists' expectations, and marking the highest job gain since March. This positive reading is attributed by National Economic Council Director Kevin Hassett to Trump administration policies, including tariffs that have encouraged companies to 'onshore production', with nearly 90,000 people building factories.

However, wages did not keep pace with inflation, reducing consumer purchasing power. Markets reacted negatively to the jobs report on the expectation of higher interest rates, which President Trump believes will lead to a downturn in the stock market due to good economic numbers.