Trump Threatens Trade Cuts Amid Strong Jobs Report
A strong jobs report in August has boosted expectations of a possible interest rate hike by the Federal Reserve. The Labor Department reported that the economy added 162,000 jobs, exceeding forecasts and raising concerns among those hoping for lower interest rates.
The improved job market data has increased the likelihood of a quarter-point hike from about 50% to more than 58%, according to CME FedWatch. This suggests that central bankers may use labor market strength as an excuse to tighten monetary policy, bringing inflation down to their target of 2%.
President Donald Trump responded to the jobs report by threatening to cut trade with countries that have a deficit with the US if the Federal Reserve doesn't lower interest rates. He tweeted, 'LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT.'