U.S. President Donald Trump escalated pressure on the Federal Reserve to cut interest rates on Friday, citing strong employment data as justification for lower borrowing costs. The August jobs report showed employers created 162,000 positions, which Trump characterized as evidence of economic strength.
In a post on Truth Social, Trump stated, "Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago!" He further argued that U.S. rates should be the lowest globally, referencing historical precedent by saying rates should be "like 'the old days.'"
Trump linked monetary policy to trade concerns, warning that he would restrict trade with countries maintaining large trade surpluses against the United States. He framed lower interest rates as preferable to tariffs as a means of improving America's competitive position.
The employment data complicated the Fed's policy calculations. While a strong labor market typically reduces pressure for rate cuts, Trump contended the central bank should lower rates further regardless. He urged the Federal Reserve to "be patriots for a change," suggesting high interest rates disadvantage the U.S. economy.
Bitcoin Market Reaction
Bitcoin experienced significant volatility following the jobs release. The cryptocurrency opened at $82,262.21 before declining to nearly $79,800, slipping below the $80,000 level. The price movement triggered substantial liquidations across crypto markets, with over $251 million in positions closing during a four-hour window around the data release. Long positions accounted for approximately $216 million of the liquidations, while short positions totaled $35.14 million.
Market participants cited concerns that stronger employment data could reduce expectations for Fed rate cuts. Prediction markets showed 54% odds of a Fed rate increase at the September 15-16 Federal Open Market Committee meeting as of the report's publication.
