Trump's Rate Hike Warning: US Jobs Report Boosts Fed Expectations

A stronger-than-expected US jobs report has increased expectations of an interest-rate hike at the Federal Reserve's September meeting.

The August employment figures showed a gain of 162,000 jobs, nearly three times as many as economists had predicted. This boost in job numbers has pushed short-term interest-rate futures to indicate about a 62% chance of a rate increase this month, up from around 55% beforehand.

The Federal Reserve meets on September 15 and 16, and its decision is likely to depend heavily on inflation reports due next week. The central bank's Chair, Kevin Warsh, has stated that he needs confidence inflation is moving back toward the target 'clearly and at sufficient speed' for a rate increase.

President Donald Trump has renewed his pressure on the Fed to cut interest rates, stating that high interest rates put the US at an unfair disadvantage. He threatened to halt trade with countries that run a deficit with the US if rates are not lowered.