Trump Threatens Trade War If Fed Doesn't Lower Rates Amid Strong Jobs Report
President Donald Trump is applying pressure on the Federal Reserve to lower interest rates following a strong jobs report that exceeded expectations. The Labor Department's August employment numbers showed an addition of 162,000 jobs, boosting the probability of a quarter-point hike from around 50% to over 58%. This trend may give central bankers more confidence in tightening monetary policy to combat inflation.
Trump took to social media to express his concerns, stating that a strong economy should be met with lower interest rates. He also threatened to impose trade restrictions on countries with which the US has a deficit if the Fed does not comply. The President emphasized that high interest rates put the country at an unfair disadvantage and would no longer tolerate it.
The jobs report and rising fuel prices are creating tension in the economy, with diesel prices reaching an all-time high of $5.85 per gallon and regular gasoline averaging $4.14 per gallon nationwide. White House Economic Council Director Kevin Hassett acknowledged that people are 'rightly anxious' about the impact on Labor Day weekend.