Trump Threatens Trade War Over Fed Interest Rate Decision

US President Donald Trump has threatened to impose trade restrictions if the Federal Reserve doesn't lower interest rates following a stronger-than-expected August jobs report. The Bureau of Labor Statistics reported that US employers added 162,000 jobs last month, exceeding economists' estimates of 53,000.

In a post on Truth Social, Trump emphasized the importance of lowering interest rates to reflect the country's improved creditworthiness. He argued that a strong economy means a lower interest rate and that countries with trade deficits would no longer be considered financially elite if they don't agree to allow the US its surpluses.

However, Friday's job numbers may actually increase the chances of the Fed raising rather than lowering rates. The latest data alleviates concerns about higher rates weakening the labor market, allowing the Fed to focus on curbing inflation, which sits at 3.7 percent year-over-year in July according to the personal consumption expenditures price index.

Traders are now pricing in a 60 percent chance that the Fed hikes rates by a quarter point at its next meeting this month, according to CME FedWatch. Trump also praised his pick for Fed Chair, Kevin Warsh, as a 'great new leader,' urging him to take bold action and be patriots.