On September 4, former President Donald Trump took to Truth Social to urge the Federal Reserve to "lower interest rates," arguing that "America's credit situation is far stronger now than it was not long ago." He went further, warning that if rates are not cut, he would halt trade with nations where the U.S. runs a trade deficit. Trump also pressed the Fed's board of governors to "become smart" under the leadership of a new chair.
The call for lower rates came just as the U.S. released August non-farm payroll data that significantly exceeded expectations. According to the Labor Department's Friday report, non-farm payrolls grew by 162,000 jobs in August, far surpassing Wall Street's consensus estimate of 55,000 and topping the highest forecast from any major institution. It marked the second-largest single-month gain of the year.
The robust jobs numbers quickly intensified market bets that the Fed will raise interest rates at its September meeting. As of now, there is no further update on this developing story.
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