US President Donald J. Trump has issued another pointed demand to the Federal Reserve following today's jobs report, insisting that the central bank cut interest rates and threatening to halt trade with countries that run surpluses against the United States. The statement is the latest in a series of public calls by the President for easier monetary policy, continuing a pattern of pressure on the Fed that has drawn attention because the central bank is designed by Congress to set policy independently of the executive branch.

In his statement, the President celebrated the August employment figures, saying:

Great jobs number just announced, breaking all estimates (except mine!) by double and triple - And you haven't seen anything yet! EMPLOYERS ADDED 162,000 JOB IN AUGUST. Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago! A STRONG COUNTRY MEANS A LOWER INTEREST RATE - IT'S A BETTER CREDIT…Very simple! We should have the LOWEST RATE of any country in the World, like "the old days." 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! LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT, which the U.S. Supreme Court, in its ridiculous and very costly Tariff decision, strongly acknowledged "the President" has an absolute right to do. ITS BETTER THAN TARIFFS! The Fed Board, with its great new leader, must get smart - BE PATRIOTS for a change. High interest rates put the U.S.A. at a very unfair disadvantage, and I won't allow that to happen!

— President DONALD J. TRUMP

Trump argued that the stronger economy justifies lower borrowing costs and asserted that the United States should have the lowest interest rate of any country in the world. He also claimed that trade partners owe their "financially ELITE" status to American tolerance of their surpluses, which he said could be stopped immediately, and that halting trade with deficit countries would be preferable to tariffs.

The President further contended that the Supreme Court's tariff decision had acknowledged the chief executive's authority to take such action, and he urged the Fed Board and its new leadership to "be patriots" and act, saying high interest rates put the US at an unfair disadvantage that he would not allow to continue.

Market reaction has been notable: the US dollar has given back most of its gains as traders interpret the jobs data as less hawkish than initially expected. Employment reports are among the data points the Federal Open Market Committee weighs when setting the federal funds rate, and traders watch such releases closely for clues about the likely direction of policy at upcoming meetings.

Source: ForexLive