Trump's Rate Hike Pressure Tested by Strong US Jobs Report
A strong US jobs report has increased expectations of an interest-rate hike at the Federal Reserve's September meeting. The August employment numbers showed employers added 162,000 jobs, nearly three times as many as economists had predicted. This comes after President Donald Trump renewed his demands for lower rates and threatened to halt trade with countries that run a deficit.
The Fed meets on September 15 and 16, and its decision will likely depend heavily on inflation reports due next week. Inflation has remained above the Fed's two percent target for five-and-a-half years, with Fed Chair Kevin Warsh stating that he needs confidence inflation is moving back toward the target 'clearly and at sufficient speed'. Otherwise, 'we have work to do.'
Trump also directed his criticism at US trading partners, saying they should have lower interest rates. He threatened to stop trading with countries that run a deficit if the Fed doesn't cut rates.