Trump's Rate Hike Pressure Mounts as US Jobs Report Surprises
The US jobs report for August showed stronger-than-expected results, with employers adding 162,000 jobs. This exceeded economists' predictions and increased expectations of an interest-rate hike at the Federal Reserve's September meeting.
According to short-term interest-rate futures, there is now a 62% chance of a rate increase this month, up from around 55% beforehand. The Fed meets on September 15 and 16, and its decision will likely depend heavily on inflation reports due next week.
President Donald Trump has renewed his pressure on the central bank, demanding lower rates and threatening to halt trade with countries that run a deficit with the US. Trump tweeted that 'High interest rates put the U.S.A. at a very unfair disadvantage, and I won't allow that to happen!' He also directed criticism at US trading partners.
Despite Trump's pressure, some Fed officials are still leaning towards a rate hike. Nationwide Chief Economist Kathy Bostjancic wrote that 'today's strong employment report provides additional support for rate hikes this year.'