Donald Trump is ramping up his attacks on Federal Reserve Chairman Jerome Powell. This time, it’s over a disappointing ADP jobs report and the Fed’s refusal to lower interest rates. Trump’s frustration spilled onto Truth Social where he called Powell “unbelievable!!!” and repeated his demand: “LOWER THE RATE.” His anger follows ADP’s announcement that private payrolls grew by just 37,000 in May—the weakest reading since March 2023. Trump argues the Fed is dragging its feet while other global powers move faster.

Weak Jobs Data Reignites Trump’s Fury

The ADP report shocked markets. Economists had forecasted a gain of over 110,000 jobs, but reality came up far short. This weak showing landed just before the official government report from the Bureau of Labor Statistics, making Wall Street even more nervous. Trump didn’t waste a second, pinning the blame on Powell and using it to renew his call for lower interest rates. He also noted that the European Central Bank has already lowered rates nine times. “We’re falling behind,” Trump warned, saying the U.S. is now at a global disadvantage.

Interest Rates Divide the Fed and Trump

Tensions between the Fed and the White House are heating up. Trump recently met Powell in person, reportedly telling him that holding interest rates steady is a mistake. Powell, in contrast, insists that decisions must be based on data, not politics. He’s taking a cautious stance, especially with inflation concerns tied to Trump’s new tariffs. The Fed has kept its benchmark rate at 4.25%-4.5% and is not expected to cut it at its upcoming June meeting. However, inside the Fed, a split is growing. Some members support eventual rate cuts, while others warn that inflation pressures—especially from tariffs—could linger.

Global Central Banks Cut While the Fed Waits

Outside the U.S., things look different. The European Central Bank has been aggressive with rate cuts—seven so far and an eighth expected soon. Their logic is that inflation is cooling and growth is sluggish. Even Switzerland may follow, with deflation showing up in recent data. Trump sees this global trend and can’t understand why the Fed isn’t acting. He argues that Powell’s hesitation puts American workers and businesses at a disadvantage. Trump’s message is clear: adapt or fall behind.

Interest Rates Policy Caught Between Politics and Data

The Fed’s approach to interest rates is rooted in long-term strategy. Powell says short-term political pressure can’t drive monetary policy. Still, Trump’s relentless push adds weight to the debate. If the economy keeps cooling and job data keeps missing forecasts, the Fed may have no choice but to act. But for now, Powell’s stance is to wait and watch. That patience, however, may only intensify Trump’s attacks.

Final Thoughts

The Fed’s next policy decision is set for June 17–18. As the date approaches, all eyes will be on the Labor Department’s full jobs report and inflation data. Trump will likely keep hammering Powell if the numbers don’t improve. With tariffs expected to drive prices higher, the Fed faces a tough call—cut rates to support jobs, or hold the line to contain inflation. Either way, the clash between Trump and Powell over interest rates isn’t going away anytime soon.