Trump Threatens Trade Retaliation Over Potential Fed Interest Rate Hike

The US jobs market continued to show strength in August, adding 162,000 jobs and exceeding expectations. This news has sparked concerns that the Federal Reserve may not lower interest rates as hoped by some investors.

Following the release of the jobs report, President Donald Trump took to social media to express his disappointment with the current state of affairs at the Fed. He threatened to cut trade if the central bank doesn't lower interest rates, stating 'A STRONG COUNTRY MEANS A LOWER INTEREST RATE - IT'S A BETTER CREDIT.'

Trump's comments came after the probability of a quarter-point hike rose from about 50% to more than 58% by the afternoon, according to CME FedWatch. This increase in the likelihood of higher interest rates is seen as a blow to those hoping for lower rates.