President Donald Trump isn't happy with the market. He might be even more disgruntled by the end of the week if inflation data confirms the Federal Reserve is likely to raise interest rates, raising the prospect of a crisis about Fed independence.

Trump's frustration is that good news is being treated as bad news by traders. Last Friday's strong payrolls report-showing jobs created in August were three times what economists had expected-led to a small market pullback. A thriving employment market only strengthened expectations the Fed will increase rates later this month. Odds of a hike currently stand at 58% according to the CME FedWatch tool. Those could head higher if this Friday's U.S. consumer-price data for August show inflation running hot.

Where the president isn't wrong, is that the jobs data doesn't have to be bad news for the stock market. Yes, higher borrowing costs will put pressure on some companies-watch high-spending software-and-cloud company Oracle which reports earnings this week-but interest rates aren't restricting the huge boom in spending on artificial intelligence.

But the real risk is if Trump's frustration at higher rates leads to a showdown with the Fed, with the market still building confidence in new central-bank chief Kevin Warsh. "LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT," Trump posted on Truth Social on Friday.

As Trump's threat would mean a halt to all trade with dozens of countries, including China and Mexico, it seems unlikely he will follow through but it shows he intends to keep pressuring Warsh in the same way as his predecessor Jerome Powell. Reopening the question of the independence of the Fed would be a much bigger risk for the market than a single rate hike.