LONDON: Donald Trump's unfathomable link between U.S. interest rate policy and trade ties with America's biggest partners led to more head-scratching than market impact. But the strangeness of the president's take offers Federal Reserve Chair Kevin Warsh an opportunity to convincingly distance himself from the White House and bolster his credibility by pushing for a Fed rate rise this month.
Friday should have been a reasonably good day for the president on the economy. After all, August U.S. payroll gains were triple the forecasts, and much of the soft summer jobs picture was revised away as well. Diesel prices did hit a record high earlier in the day, potentially putting upward pressure on inflation. But tepid wage gains from the employment report could just as easily be read as another reason for the Fed to stand pat on rates as it awaits an inflation update this Friday - just days before its next meeting.
