Trump's Rate-Cut Demand Tests Fed Ahead of Interest-Rate Decision

US payrolls rose by 162,000 in August, exceeding expectations and reversing a summer slowdown in hiring. The unemployment rate remained steady at 4.1%, while the six-month average job growth is now at its highest level in over two years.

The strong jobs report adds to the case for US interest-rate hikes, but Federal Reserve Chairman Kevin Warsh faces pressure from President Donald Trump to cut rates instead of tightening monetary policy.

Trump has threatened to stop trade with certain countries unless the Fed cuts rates, which would risk a hit to the central bank's credibility if it fails to follow through on its recent hawkish rhetoric.