Trump Vows Trade Retaliation if Fed Doesn't Budge on Rates

US President Donald Trump has threatened to impose trade restrictions on countries with which the US has a deficit if the Federal Reserve does not lower interest rates in response to strong jobs numbers. The Bureau of Labor Statistics reported that employers added 162,000 jobs in August, exceeding economists' expectations of 53,000.

Trump took to Truth Social to express his dissatisfaction with the current interest rate range of 3.5 to 3.75 percent and called for a reduction, citing the US's improved economic position as justification. He also claimed that countries with trade surpluses would no longer be considered financially elite if they did not allow the US to have its way.

However, the strong jobs report may actually increase the likelihood of interest rate hikes rather than cuts, according to traders who are now pricing in a 60 percent chance of a quarter-point rate hike at the Fed's next meeting. Trump has previously feuded with Federal Reserve Chair Jerome Powell over rate cuts and even threatened to fire him on several occasions.

The President praised his pick for Fed Chair, Kevin Warsh, calling him a 'great new leader' who must 'get smart, BE PATRIOTS for a change'. He emphasized that high interest rates put the US at an unfair disadvantage and vowed not to allow it to happen.