Trump renews pressure on the Federal Reserve to cut interest rates, threatening to cut off trade with trade deficit countries if it fails to do so.

U.S. President Donald Trump once again publicly called on the Federal Reserve to slash interest rates sharply on Friday, pressuring the Fed and its Chairman Kevin Wash, claiming the U.S. should have the world’s lowest interest rates. He even threatened that if relevant countries continue running massive trade surpluses with the U.S., America may halt trade with nations that hold trade deficits against it. This statement stands in sharp contrast to the strong U.S. jobs data released the same day. U.S. August non-farm payrolls rose by 162,000, far exceeding the market consensus of 56,000. July’s figure was also sharply revised from a previously reported decrease of 23,000 to an increase of 21,000, while the unemployment rate held steady at 4.1%. The robust jobs data further dimmed market expectations for Fed rate cuts, prompting markets to reassess the September monetary policy path. Investors are now awaiting August’s CPI data, due next week, to assess inflation trends and the Fed’s future policy direction. Bloomberg Economics projects that August’s year-on-year headline CPI growth may climb to 3.4%, while core CPI year-on-year growth could drop to 2.4%. Market analysts note that Trump’s persistent demand for rate cuts is in clear conflict with the current labor market resilience and the reality that inflation remains above the Fed’s 2% target. Ahead of the September Fed meeting, CPI and energy price movements will be key variables shaping policy expectations.