WASHINGTON (Gray DC) – President Donald Trump said he will cease trading with every country the U.S. has a trade deficit with if the Federal Reserve does not cut interest rates.
Trump made the threat on Truth Social Friday following a jobs report that most economists believe will encourage the Federal Reserve to increase interest rates in an effort to curb inflation.
The U.S. added 162,000 jobs in August, doubling most economists’ expectations. That was the highest mark since March and a significant increase from the 21,000 jobs added in July.
The largest job gains came in the leisure and hospitality sector, as bars and restaurants ramped up hiring.
The unemployment rate remained unchanged at 4.1 percent.
National Economic Council Director Kevin Hassett said the positive reading is a result of Trump administration policies.
“People because of the tariffs are onshoring production. We have almost 90,000 people building factories right now, which is an unheard of number. And so there’s just lots and lots of good news in this report,” Hassett said.
Wages did not keep pace with inflation, reducing consumer purchasing power.
Later during an extensive press interaction in the Oval Office, President Trump observed, “It’s been amazing. And today, they announced 162,000 jobs, new jobs, which was about five times more than the projection. And sadly, I said, the numbers doing so good. The country is doing so well. Watch the stock market will go down because we have good numbers, because everyone every time you have good numbers, the stock market goes down.”
Markets reacted negatively to the jobs report on the expectation that it will lead to the Federal Reserve hiking interest rates.
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