Trump says ‘Stupidity causes inflation’ and threatens to stop trade with foreign countries in retaliation for higher interest rates

On the 20-month anniversary of his promise of an economic boom, President Donald Trump reacted negatively to a positive jobs report for August. The 162,000 job gain he claimed would contribute to inflation instead resulted in a backlash from the president. Trump blamed the financial markets, the Federal Reserve and U.S. trade partners for the surprise increase in employment.

He stated that "success does not cause inflation. Stupidity causes inflation" and expressed anger over falling stock markets due to inflation concerns. Trump also claimed that the combination of lower hiring and higher prices had been dragging down his administration's promise of rapid growth. If the Federal Reserve cut interest rates, Trump argued that it could exacerbate inflation and complicate his political and economic situation.

Despite his optimism about future growth, Trump's approval rating on the economy was low at 32%. His recent trade tariffs against Canada have caused problems for Republicans in the Maine and Michigan Senate races. Trump's administration continues to promote policies such as artificial intelligence, tariffs and tax cuts, but experts remain skeptical of the promised growth.