DawgTalkers.net Forums DawgTalk Palus Politicus Trump threatens trade war if rates aren’t cut after strong jobs report

President Trump called on the Federal Reserve to lower interest rates Friday after the August jobs report came in stronger than expected, threatening to cut off trade with several countries if the central bank doesn’t budge.

The Bureau of Labor Statistics reported Friday that U.S. employers added 162,000 jobs last month, well above the 53,000 that economists were anticipating.

Trump touted the “great” jobs numbers Friday before quickly turning his attention to the Fed, which he has long pushed to slash rates.

“Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago!” he wrote in a post on Truth Social. “A STRONG COUNTRY MEANS A LOWER INTEREST RATE – IT’S A BETTER CREDIT.”

“Without the United States agreeing to allow them their big surpluses, and we could stop that immediately, they would no longer be considered financially ELITE!” he added. “LOWER THE RATE OR I’LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT.”

The Fed has held rates steady at a range of 3.5 to 3.75 percent at its last five meetings, as inflation has remained persistently above the central bank’s target rate of 2 percent.

Annual inflation sat at 3.7 percent year over year in July, according to the personal consumption expenditures price index, the Fed’s preferred measure of inflation.

However, Friday’s job numbers appear to increase the chances that the central bank raises rather than lowers rates. The latest data alleviates concerns that higher rates are weakening the labor market and allows the Fed to turn its attention to curtailing inflation.

Traders are now pricing in a 60 percent chance that the Fed hikes rates by a quarter point at its next meeting this month, according to CME FedWatch, which tracks bets placed on future central bank decisions.

Trump touted Fed Chair Kevin Warsh as a “great new leader” Friday even as he ramped up pressure on his pick to run the central bank. The president frequently feuded with Warsh’s predecessor, Jerome Powell, over rate cuts, threatening to fire him on several occasions.

“The Fed Board, with its great new leader, must get smart – BE PATRIOTS for a change,” Trump said. “High interest rates put the U.S.A. at a very unfair disadvantage, and I won’t allow that to happen!”

https://thehill.com/business/6071563-trump-trade-war-fed-interest-rates-august-jobs-report/

This is just like blowing your nose.

What's really messed up is that Trump is possibly actually investing ("trading futures") in the opposite happening. Yet, some people will probably believe he will actually get what he allegedly wants and bet that way. Market manipulation at its slimiest.

Federal Reserve hikes key rate for 1st time in 3 years, defying Trump demands for a cut

WASHINGTON (AP) — The Federal Reserve raised its benchmark interest rate Wednesday for the first time since 2023 in an effort to quell stubbornly-high inflation, a move that could spur a sharp response from the White House.

The quarter-point increase lifts the Fed’s key rate to about 3.9% and, over time, could result in higher borrowing costs for mortgages, auto loans, and credit cards. In a set of quarterly projections, the Fed also signaled that its rate-setting committee expects to hike rates a second time later this year to 4.1%.

“Today’s policy action will support a timelier return” to the central bank’s 2% inflation goal, the Fed said in a statement.

The move comes as Americans are already struggling with high costs for groceries, gas, and housing. Affordability has taken on a leading role in the upcoming midterm elections, just seven weeks away.

In a press conference following the Fed’s announcement, Fed Chair Kevin Warsh said that while the job market remains resilient, inflation has stubbornly remained above the Fed 2% target for years. “The plain fact is that inflation is too high and has been for too long,” Warsh said.

Since taking the lead at the Fed in May, Warsh has said the Fed is firmly committed to taming inflation, and that policymakers would take their cues from the data to determine if inflation was going in the right direction. “We must be confident that underlying inflation is moving to our objective clearly and at sufficient speed. Today the FOMC decided that this standard has not been satisfied,” Warsh said, referring to the policy-setting Federal Open Market Committe.

The rate hike marks a turnaround for Warsh, who was appointed by President Donald Trump and took over the top job in May. Warsh often suggested last year when under consideration by Trump that the Fed could reduce its key rate, echoing the president’s call for lower borrowing costs.

And in April, when Warsh’s nomination was under consideration by the Senate Banking Committee, Trump said in a television interview that he would be disappointed if Warsh didn’t cut rates. On the same day, however, Warsh told the committee he did not promise Trump he would cut rates and said he would be “an independent actor” as Fed chair.

Yet the ongoing disruptions from the Iran war, which have pushed up average gas prices more than 7% from just a month ago, threaten to spread through the economy and keep broader inflation stubbornly high. An inflation report last week showed core prices, which exclude food and energy, accelerated a bit in August.

According to the Fed’s preferred measure, inflation was 3.7% in July compared with a year ago, up from 2.3% in April 2025, just before Trump unveiled sweeping tariffs. Core inflation, which excludes the volatile food and energy categories, was 3.3% in July, the latest data available, up from 3% just before the Iran war and far above the Fed’s target.

Earlier Wednesday, the government said retail sales jumped 1.2% in August from the previous month, a sign that consumers are still spending at healthy levels despite sentiment surveys that indicate Americans remain gloomy about the economy. Strong spending is a sign that interest rates at current levels aren’t necessarily restricting the economy and cooling inflation.

“While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient,” the Fed said, a likely reference to ongoing consumer spending and strong investment in AI data centers by large technology companies.

Higher inflation isn’t all about gas prices. Ongoing investment in AI has driven up prices for computer chips and other electronic gear, adding to overall inflation. Tariffs may still be elevating some costs, such as appliances, which jumped in price last month.

Trump harshly criticized Warsh’s predecessor, Jerome Powell, for not cutting rates quickly enough. His Justice Department even launched a criminal investigation into Powell over brief testimony he delivered to Congress last year, though that probe was eventually dropped.

When asked Wednesday how the president might react to the rate increase, Warsh said, "“I’ve got nothing for you on a discussion with the president.”

Kevin Hassett, Trump’s top economic adviser, was asked in an interview with Fox News on Sunday how Trump might react to a rate hike.

“I’m sure he’s not going to be super happy about it, but he will defend the independence of Kevin Warsh above all,” Hassett said.

Sure he will. Let's see how that one plays out.

Warsh might also have a measure of protection from the fact that his father-in-law is Ronald Lauder, a friend of Trump’s and a billionaire donor to his campaigns.

In the Fed’s economic projections issued along with the rate decision, officials indicated they are likely to raise the key rate once more this year. Analysts doubt that will be at the next meeting in October, just days before the midterm elections.

“Most FOMC members see a total of two hikes this year per the (projections), and it will likely skip October’s meeting given its proximity to the midterm elections,” said Kay Haigh of Goldman Sachs.

For their part, Wall Street investors have forecast three hikes for the Fed, with additional increases in December and March.

https://apnews.com/article/federal-reserve-warsh-trump-inflation-bab1bcb07e973bfb2dd0c3e5fbbb73b1

I'm not even sure if that's the case. Trump was claiming it was a conspiracy against him every time the rates weren't cut for years when Jerome Powell was chair ... now he's picked his own hand picked replacement and if the same trend of policy making (by individuals who know more than Trump does) he's going to look foolish again, which he hates ... and in an oversimplification of the economy Trump simply equates low rates = good, raising rates = bad. It seems to me that Trump simply wants people to do exactly what he wants and if that doesn't happen he does this sort of thing with threats and postures. . . many seem to like this and believe it's a sign of a strong leader. Personally I think it's one more example of him being a petulant manchild or wannabe king ... the only hope is that there are still a few individuals with enough backbone to do the right thing and that come the mid-terms we get some balance back into Congress and the House ... the trouble with that will be that everything will then be a quagmire of political posturing and democrats simply doing everything to stymie Trump rather than trying to make things better.

Trump blames Fed board for rates hike

NEW YORK, Sept. 16 (Xinhua) -- U.S. President Donald Trump on Wednesday accused what he called a "hostile" and "political" Federal Reserve board of raising interest rates.

Sparing Fed Chairman Kevin Warsh from criticism Wednesday evening, Trump told reporters, "I'm relying on Kevin, but he has got a very tough board." All 12 voting members of the Federal Open Market Committee (FOMC), including Warsh, voted in favor of the rate hike.

"The plain fact is that inflation is too high and has been for too long," Warsh said at a press conference after the FOMC meeting. "The Committee's unanimous vote shows our resolve to achieve price stability on a timelier basis."

He added that achieving stable prices has been a challenge for more than five and a half years.

Trump claimed that the FOMC raised interest rates to hurt him politically. "They're raising that only for political reasons, and that's a raise against Trump. They are raising the rates to make Trump do as bad as he can possibly do."

Inflation has been a major concern for consumers ahead of the November midterm election.

The Fed on Wednesday raised its target federal funds rate by 25 basis points to a range of 3.75 percent to 4 percent to address persistent inflation, marking its first interest rate hike since July 2023.

Following the rate hike announcement, Trump wrote on his social media platform Truth Social that interest rates should be 1 percent or less because the United States is the "best credit in the world -- BY FAR."

https://en.people.cn/n3/2026/0917/c90000-20500894.html

Not only did trump appoint Fed Chairman Kevin Warsh, he also appointed two members of the board. The vote was unanimous.

Trump's theory? They're out to get him.