The U.S. labor market demonstrated unexpected resilience in August, adding 162,000 jobs and complicating the outlook for monetary policy adjustments. In response to the robust employment figures, President Trump has intensified pressure on the Federal Reserve, suggesting he will move against countries with trade surpluses if the central bank does not reduce interest rates during its September meeting.
Trump Threatens Trade Sanctions to Force Fed Rate Cut After Strong Jobs Report
Linking trade policy to monetary independence is a dangerous precedent. The Fed must remain insulated from political pressure.
162k jobs is solid. I wonder if this tweet-style threat actually influences the FOMC, or if they just ignore it?