Trump Slams Fed’s Powell over Rate Cuts After Weak Jobs Data/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump lashed out at Fed Chair Jerome Powell after private hiring data showed a sharp slowdown in May. Trump demanded immediate interest rate cuts, blaming Powell’s inaction rather than his own tariff policies. The White House may be positioning Powell as a scapegoat ahead of key economic reports due this week.
Trump Attacks Powell Over Slow Hiring: Quick Looks
- Trump Calls for Rate Cuts After ADP Report: Citing ADP’s disappointing May jobs data, Trump said Powell must “LOWER THE RATE.”
- Hiring Slows to 37,000 in May: Private-sector job growth fell sharply, adding only 37,000 positions—the weakest in over two years.
- Fed Held Back by Trade Uncertainty: Analysts say Trump’s unpredictable tariff policies are key factors behind employer hesitation.
- Powell Met With Trump Recently: Despite a meeting last week, tensions remain high as Trump increases public pressure on the Fed.
- White House May Shift Blame to Fed: Trump’s messaging suggests Powell could be the fall guy if economic conditions worsen.
- Europe’s Rate Cuts Cited as Example: Trump pointed to European central banks’ easing measures, demanding similar action from Powell.
- Fed Holding Rates Steady for Now: Central bank says current policy reflects cautious optimism about U.S. economic fundamentals.
- Eyes Now on Friday’s Jobs Report: Economists predict 125,000 jobs were added in May, signaling moderate labor market strength.
Deep Look: Trump Blames Fed Chair Powell After May Jobs Report Disappoints
WASHINGTON — President Donald Trump wasted no time Wednesday morning directing fresh criticism at Federal Reserve Chair Jerome Powell, urging immediate interest rate cuts just minutes after a disappointing private-sector employment report showed hiring had slowed dramatically in May.
Taking to his Truth Social platform, Trump declared: “ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE. He is unbelievable!!!”—a pointed reference to the latest ADP National Employment Report, which showed just 37,000 jobs were added last month, the lowest gain in over two years.
Mounting Pressure on the Fed
The president, who has persistently leaned on the central bank to lower borrowing costs since the start of his first term, is now stepping up public pressure ahead of a critical stretch for the U.S. economy.
The ADP report, released early Wednesday, confirmed signs of labor market cooling. It followed a downward revision of April’s numbers and highlighted a broad decline in employer confidence, particularly in sectors sensitive to economic and trade uncertainty.
“After a strong start to the year, hiring is losing momentum,” Nela Richardson, ADP’s chief economist, said in the release.
Trade Policy at the Core of the Slowdown
Although Trump blamed Powell, economists point to his own administration’s trade policy as a significant drag on hiring. Trump’s tariffs and erratic trade moves have created uncertainty among employers, many of whom have paused expansion and hiring plans.
Ironically, this uncertainty is part of what’s keeping the Fed from cutting rates too quickly. While the Fed did slash rates three times in 2024, it has since adopted a wait-and-see approach, wary of triggering inflation or misreading the economy’s underlying strength.
Europe vs. U.S. Policy
Trump also claimed that the Federal Reserve was lagging behind other central banks. “Europe has lowered NINE TIMES!” he added in his post, implying Powell was out of step with global monetary policy trends.
While it’s true that the European Central Bank has aggressively lowered rates in response to economic weakness, analysts say such comparisons oversimplify the broader picture. Europe’s economic challenges are structurally different, and Fed officials have said their cautious stance is deliberate, given the U.S.’s relative economic resilience.
Political Blame Game Ahead?
Trump’s criticism may be more than economic posturing—it could be political strategy. As campaign season heats up, the White House could frame Powell and the Fed as scapegoats should the economy falter further.
“The administration may use Powell’s caution as a contrast to their ‘pro-growth’ agenda,” said one Washington-based economist. “It’s about controlling the narrative going into a high-stakes election cycle.”
Despite the attacks, the Fed has so far signaled no immediate shift in monetary policy. Officials continue to monitor inflation, employment, and growth indicators before making their next move.
Friday’s Report Looms Large
All eyes now turn to the Labor Department’s official jobs report, due out Friday. Economists expect the U.S. added around 125,000 jobs in May, down from previous months but still considered a moderately healthy pace of hiring.
“This number is going to be viewed alongside a lot of other data out this week,” Richardson told reporters.
If Friday’s numbers confirm a broader slowdown, the Fed may face renewed pressure—not just from Trump, but from financial markets, employers, and households alike.
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