Trump says ‘stupidity causes inflation’, brushes off recession fears after strong jobs report

WASHINGTON, DC: On Friday, Sept 4, after a surprisingly strong August jobs report, President Trump aimed at the Federal Reserve and Wall Street.

He insisted that the market’s dip wasn’t about real economic danger; it was just misguided thinking. The Labor Department said employers created 162,000 jobs in August, and it bumped up June and July numbers by another 55,000 altogether. Still, instead of cheering the good news, stocks slipped, and Treasury yields climbed. Investors worried that this strong hiring might push the Fed to raise rates rather than cut them.

A pattern Trump says defies logic

"When you have bad numbers, it goes up because of the stupidity of the way they think about inflation and growth does not cause inflation, stupidity causes inflation!" Trump said.

"We have to change our ways. Stock market should go UP. We're just doing so well. Watch the stock market will go down because we have good numbers because every time you have good numbers, the stock market goes down," the president said.

Trump argued the market's reaction represents a break from how things used to work, framing strong economic data as something that should boost investor confidence rather than trigger selloffs.

He said, "You know, 25 years ago, when you announced good numbers, the stock market went up because you had a better credit. Your country, or your company, I guess you could say, if it was a company, but it's a country!"

He made similar remarks on Truth Social earlier in the day, writing, “GREAT NEWS! Our THRIVING Economy added 162 THOUSAND Jobs in August, in honor of our Great American Workers who we celebrate this (and every!) Labor Day.”

Renewed pressure on the Fed

Trump seized the moment to push once more for the Federal Reserve to cut interest rates, insisting that the US deserves the world’s lowest borrowing costs because of its strong economy.

"The Fed Board, with its great new leader, must get smart, BE PATRIOTS for a change," Trump wrote, adding that high interest rates put "the USA at a very unfair disadvantage."

Meanwhile, after the jobs report, traders ramped up their bets on a Fed rate hike at the September meeting, raising the probability from about 50 to 60 percent. The two-year Treasury yield jumped, and the dollar gained strength against a range of major currencies.

Trump also wrote on Truth Social, “The effects of the Trump Boom can be seen across many Industries. My Administration's Fair Trade Policies, using a wonderful tool called "TARIFFS," have reset the Global Economy, bringing Manufacturing Jobs BACK to America, like never before.”