Trump Calls for Interest Rate Cuts After Unemployment Figures

Former U.S. President Donald Trump argued that interest rates should be lowered this month after the unemployment data came in stronger than expected. Trump stated that high interest rates put the U.S. economy at a "very unfair disadvantage." Notably, the addition of 162,000 new jobs to the economy in August was nearly three times the 56,000 figure that analysts had predicted. This increase was particularly driven by job growth in the accommodation and education sectors.

Trump emphasized that interest rates should be at the lowest levels globally, saying, "The Fed management should be smart and show patriotism with its new leader." Expressing that high interest rates put the U.S. at an unfair disadvantage, Trump stated he would not allow this situation to continue. The next interest rate decision will be made on September 15-16.

Last week, Federal Reserve Chairman Kevin Warsh signaled that interest rates could be raised if assurances were not provided that price increases were not diminishing for the American people. According to the latest data, the annual inflation rate stands at 3.4%, which is increasing expectations for interest rate hikes. Additionally, average hourly wages rose by 3.1% in August, reaching $37.75.

Analysts indicate that strong employment data could make an interest rate hike more likely if the inflation figures to be released next week exceed the Fed's target. According to CME Group's "FedWatch" data, 60% of investors believe there will be an interest rate hike in September. However, the stock market declined despite these positive data. Trump described stock market movements as "crazy," stating that strong unemployment data should lead to a rise in the markets.

Source: BBC Business