Trump Threatens Trade Retaliation Over Strong Jobs Report

A strong August jobs report released by the Labor Department showed that the US economy added 162,000 jobs, exceeding expectations. This news sparked a rise in the probability of a quarter-point hike to over 58% by the afternoon, according to CME FedWatch.

The strong labor market data may give central bankers additional cover to raise interest rates to bring inflation down to their 2% target, as declared by Federal Reserve Chairman Kevin Warsh. In response, President Donald Trump threatened to cut trade with countries that have a deficit with the US if the Fed doesn't lower interest rates.

Trump stated on social media that the US should have the lowest interest rate in the world and that higher rates put the country at an unfair disadvantage. He also mentioned that he would stop trading with countries with which the US has a deficit, citing his authority as granted by the US Supreme Court's Tariff decision.