President Donald Trump stepped up his campaign for lower interest rates on Friday, pointing to stronger-than-expected job growth as evidence that the American economy remains resilient enough to absorb cheaper borrowing costs.
Trump cited the addition of 162,000 nonfarm jobs in August, which surpassed economists' expectations, as a sign that the US economy remained on solid footing.
He argued that a stronger economy should translate into lower borrowing costs and urged the Fed to act.
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“Lower the interest rates,” Trump said on Truth Social, contending that the strength of the US economy makes it a stronger credit and should therefore allow for cheaper financing.
He also criticised the central bank for maintaining what he considers excessively high rates, saying elevated borrowing costs could put the US at a competitive disadvantage.
The comments came as Wall Street opened mixed on Friday following the release of the August employment report.
The Dow Jones Industrial Average fell 0.17%, while the Nasdaq Composite gained 0.3%. The S&P 500 was little changed.
According to data from the US Bureau of Labor Statistics, nonfarm payrolls increased by 162,000 in August, beating Bloomberg estimates, while the unemployment rate held at 4.1%.
The increase in employment was supported by a rebound in leisure and hospitality, along with gains in government hiring.
Manufacturing payrolls recorded their strongest increase since 2023, while construction companies added the most workers since January.
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Trump has framed the jobs data as a reason for the Fed to ease monetary policy, arguing that the country's economic strength warrants lower interest rates.
The Federal Reserve, however, must weigh labour market conditions alongside inflation when deciding the path for borrowing costs.
Trump also warned that he could restrict trade with countries running large surpluses with the US, arguing that such measures could be preferable to imposing tariffs.
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