Trump Threatens Trade Restrictions Over Higher Interest Rates

US President Donald Trump has threatened to restrict trade with countries that have a deficit with the US if the Federal Reserve does not lower interest rates. This comes after the strong jobs report for August, which showed an increase of 162,000 jobs, exceeding expectations.

The Labor Department's report also led to a rise in the probability of a quarter-point hike from about 50% to more than 58%, according to CME FedWatch. This has given central bankers additional cover to restrict monetary policy and bring inflation down to their 2% target.

Trump took to social media to express his frustration, saying 'Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago! A STRONG COUNTRY MEANS A LOWER INTEREST RATE - IT'S A BETTER CREDIT'. He also warned that he would stop trading with countries that have a deficit with the US, citing his 'absolute right' as President.