Trump urges Fed to cut rates despite strong jobs data and inflation concerns

Donald Trump has called for interest rates to be cut later this month, claiming higher rates put the US at a "very unfair 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.

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.

Trump said the US should have the "LOWEST RATE of any country in the World".

"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!", the president said in a post on social media, external.

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.

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.

The next interest rate decision will be made on 15-16 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.

On Friday, US diesel prices hit an all-time high of $5.85 a gallon on average, compared to $3.71 a year ago.

But despite the cost of living rising, wages also appear to be increasing. In August, average hourly earnings for all employees were $37.75 on average, having increased 3.1%.

"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.

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.

Almost 60% of traders were betting on an interest rate hike in September, according to CME Group's "FedWatch" data.

An increase in employment during the final month of the summer in restaurants and bars, as well as in local government education ahead of the new school year, was behind August's labour market rebound.

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. 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.

While many more jobs were added, the US unemployment rate remained unchanged at 4.1% last month, with seven million out of work. Both measures have changed little over the year.

In response to the stronger jobs figures raising expectations of a interest rate hike, US stock market indexes were trading down on Friday.

Trump called the response "crazy". "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.