Donald Trump has called for an interest rate cut on September 15-16, claiming that high rates put the US at a "very unfair disadvantage". The number of new roles added to the economy in August was 162,000, nearly triple the forecasted 56,000. Despite this strong jobs report, almost 60% of traders are betting on an interest rate hike in September, with inflation remaining above the Fed's 2% annual target at 3.4%. Economists say a hike is now more likely due to the strong jobs market and rising inflation figures.
Written by the local model on 2026-09-04,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
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Donald Trump has called for interest rates to be cut later this month, claiming higher rates put the US at a "very unfair disadvantage".
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rates → publish → disadvantage
The president's remarks came as stronger-than-expected jobs figures in the US added to growing expectations that rates could be increased, with inflation still running high and American households feeling the pinch of rising prices.
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households → come → prices
The number of roles added to the economy increased by 162,000 in August, almost triple the 56,000 forecast by analysts, driven by a boost in hospitality and education hiring.
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number → add → hiring
Trump said the US should have the "LOWEST RATE of any country in the World".
"
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US → say → World
The Fed Board, with its great new leader, must get smart - BE PATRIOTS for a change.
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Board → get → change
High interest rates put the U.S.A. at a very unfair disadvantage, and I won't allow that to happen!", the president said in a post on social media, external.
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president → put → media
Last week, Kevin Warsh, chairman of the US central bank, signalled that rates could be hiked if policymakers were not confident price rises were easing for Americans.
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rises → signal → Americans
Inflation, which measures price increases over time, remains above the Fed's 2% annual target, with prices up 3.4% in the past 12 months, according to the latest data.
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prices → measure → data
The next interest rate decision will be made on 15-16 September.
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decision → make → September
Rates were left unchanged between 3.5% and 3.75% in July for the fifth time in a row, but concerns over inflation remain due to the ongoing conflict between the US and Iran, which has caused as surge in global oil prices.
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which → leave → prices
On Friday, US diesel prices hit an all-time high of $5.85 a gallon on average, compared to $3.71 a year ago.
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prices → hit → 3.71
But despite the cost of living rising, wages also appear to be increasing.
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wages → rise → living
In August, average hourly earnings for all employees were $37.75 on average, having increased 3.1%.
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earnings → increase → employees
"Even the most committed dove would struggle to find anything in the August employment report to justify keeping interest rates unchanged," said Stephen Brown, chief North America economist at Capital Economics.
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Brown → struggle → Economics
He added that the strength in the jobs market meant that the latest inflation figures released next week would only need to be moderately above the Fed's target to fuel expectations of a September hike.
"A hike in rates just became a bit more likely," said Neil Birrell, chief investment office of investment firm Premier Miton.
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Birrell → add → Miton
Almost 60% of traders were betting on an interest rate hike in September, according to CME Group's "FedWatch" data.
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% → bet → data
Weaker job figures released earlier in the summer were revised up by the US Bureau of Labor Statistics, revealing a stronger labour market than previously thought.
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figures → release → market
Instead of the economy being deemed to have shed 23,000 jobs in July, some 44,000 were found to have been created in subsequent estimates.
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44,000 → deem → estimates
While many more jobs were added, the US unemployment rate remained unchanged at 4.1% last month, with seven million out of work.
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rate → add → work
Both measures have changed little over the year.
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measures → change → year
In response to the stronger jobs figures raising expectations of a interest rate hike, US stock market indexes were trading down on Friday.
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indexes → raise → Friday
Trump called the response "crazy".
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Trump → call → response
"We just got GREAT Numbers on Jobs, the Market should go UP, because our Credit and Economy are better but, as always, for the past 25 years, the Stock Market goes DOWN, because we're living under False Reality that if things are good, you've got to "KILL IT" because of a "fear" of Inflation," he said.
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he → get → Inflation
