Trump's Midterm Mixed Bag: Jobs Up, Diesel Prices Skyrocket

The US labor market showed strong growth in August, adding 162,000 jobs and maintaining an unemployment rate of 4.1 percent. However, record-high diesel prices may fuel inflation further.

Diesel prices have increased by 55 percent since the Iran war began in late February, according to the AAA motorists' association. This surge in energy costs has contributed to overall price rises, which have been driven by Trump's war on Iran and his signature tariff policies.

The Federal Reserve is set to meet later this month to discuss interest rate-setting. Strong job growth indicates a healthy labor market, allowing the central bank to focus on keeping long-term inflation at its two-percent target. Consumer inflation ran at 3.3 percent in July, with August data due next week.

President Trump responded to the jobs data by calling for lower interest rates, tweeting that the USA is a 'much stronger credit' than it was before and urging the Fed to reduce rates or face trade restrictions on countries with which the US has a deficit. He also dismissed stock market losses due to expected rate hikes as a 'false reality.'