A new wave of concern has overtaken the broader U.S. financial market after the release of the August 2026 jobs report, which came in much stronger than economists expected.
According to the report, U.S. employers added 162,000 jobs in August, while the unemployment rate stayed at 4.1%. That was far above the roughly 65,000 jobs economists had expected, and it marked a strong rebound from the much weaker hiring seen earlier in the summer.
Seeing this, U.S. President Donald Trump took to Truth Social and argued,
Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago! A STRONG COUNTRY MEANS A LOWER INTEREST RATE – IT’S A BETTER CREDIT…Very simple!
He pressed,
We should have the LOWEST RATE of any country in the World, like “the old days.”
However, in reality, a strong jobs report usually weakens the case for immediate rate cuts.
Why are higher rates a cause for concern?
In August, payroll growth was well above the average monthly gain of 31,000 seen during the last 12 months, which makes the labor market look stronger – atleast on paper.
That is why financial markets reacted almost in the opposite direction to Trump’s demand. After the jobs report, traders increased their expectations that the Fed could raise rates, not cut them, at its September 15–16 meeting.
However, Trump views high rates as something that disadvantages American companies relative to businesses operating in countries with cheaper financing. He asserted,
The Fed Board, with its great new leader, must get smart – BE PATRIOTS for a change.
Crypto and rate cuts
Needless to say, Bitcoin [BTC] has become highly sensitive to Fed policy ahead of the September FOMC meeting. BTC went down to $77K and rate-hike odds to 57% after Fed Chair Kevin Warsh’s hawkish Jackson Hole speech.
Then Fed Governor Christopher Waller’s more neutral comments on the 3rd of September triggered a 5% Bitcoin rally, while spot BTC ETFs recorded $730.8 million in net inflows.
Rate-hike odds subsequently fell toward 50%, leaving markets in a coin toss between a hike and a hold.
Past scenarios
Historically, Fed decisions have acted as major game changers for crypto. This was last seen in 2022, when rates jumped from 0.25% to 4.50%, pressing the accelerator on Bitcoin’s bear market.
On the other hand, the September 2024 rate cut was followed by stronger Bitcoin performance and increased crypto investment-product inflows.
Now, in 2026, Bitcoin is around the $80,000 area, and institutional ETF flows have recently strengthened, so an unexpected cut could trigger a sharp BTC rally. But if the Fed cuts because it sees a serious economic slowdown, crypto could initially sell off instead.
Final Summary
- President Trump is pressing the Fed to lower the interest rate after the August jobs report.
- Crypto has been very reactive to Fed rate cuts, and hence the current jobs report raises concern.