"Lower the rate or I’ll stop trading": Trump pressures Fed after strong US jobs report

In a recent post on Truth Social, US President Donald Trump applauded the creation of 162,000 jobs in August, deeming the number significantly higher than anticipated. However, despite the robustness of the labor market, Trump reiterated his demand for a more accommodating monetary policy from the Federal Reserve (Fed). The President argued that the United States' enhanced creditworthiness should lead to lower interest rates and insisted that the country should have the lowest borrowing costs globally.

Trump further emphasized the connection between interest rates and his trade policy, threatening to cease trade with countries running surpluses with the United States, stating, "Lower the rate or I'll stop trading with countries with which we have a deficit." This move was framed as an alternative to tariffs and called on the Fed Board, now under the leadership of its "great new leader," to reduce borrowing costs.

This action adds political pressure on the US central bank as investors scrutinize the future trajectory of interest rates following the latest employment data.