Trump Threatens Trade War Over Interest Rate Hike

U.S. President Donald Trump is once again applying pressure on the Federal Reserve to lower interest rates, this time by threatening to halt trade with certain countries if his demands are not met.

In a statement made shortly before a possible interest rate hike, Trump reiterated his threat to cut off trade with countries that have a trade deficit with the U.S. 'I'm going to do it,' he said. 'It will take place over a certain period of time.'

Trump's comments come after the release of a strong jobs report for August, which showed an increase of 162,000 new jobs. Economists had expected only 55,000.

However, some economists note that a strong labor market can fuel wage growth and increase the risk of inflation. In fact, the U.S. has been experiencing above-target inflation for over five years, with a rate of 3.4 percent in August.