President Trump is again calling for lower interest rates after positive employment data in the U.S. Some analysts expect that new rate cuts could generate a positive boost for Bitcoin.
However, there are no signs that Powell will change his mind. In fact, it is even less likely. Tariffs can cause unprecedented chaos, and the economy does not need rate cuts to survive right now.
Can Trump force interest rate cuts in the U.S.?
Earlier today, the U.S. Bureau of Labor Statistics released its latest jobs report, which appears quite positive in light of recession fears.
Total non-farm payroll employment increased by 177,000, surpassing expectations, while unemployment remained stable and wages increased. This led President Trump to once again call for interest rate cuts:
Gasoline just broke $1.98 a gallon, the lowest in years, groceries (and eggs!) down, energy down, mortgage rates down, employment strong, and much more good news, as billions of dollars pour in from tariffs. Just like I said, and we’re only in a transition stage, just getting...
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) May 2, 2025
President Trump has repeatedly urged Federal Reserve Chairman Jerome Powell to cut interest rates. The crypto industry has also strongly advocated for such a move, which would encourage investment in risk assets.
However, both Powell and other senior Fed officials have been very clear that tariffs are too unpredictable to allow for further rate cuts.
Powell's position has been very consistent. Rates can severely harm the economy, and the Federal Reserve needs to maintain its reserves to avoid a future collapse. If it cut rates after positive news, the Fed would have one less tool in the event of a real crisis.
Trump even threatened to fire Powell over the issue of rate cuts but backed down after the market panic. He cannot legally fire Powell; removing such a prominent regulator would undoubtedly cause chaos.
Following the release of the jobs report, the market anticipated fewer rate cuts, and the CME reported that an adjustment in May is virtually impossible.
CME Interest Rate Forecasts. Source: CME Group
To be direct, there is a very low chance that Trump will get the rate cuts he wants anytime soon. Justin Wolfers, an economist at the University of Michigan, explained why the positive report actually makes rate cuts less likely:
"I’m almost certain that the Fed will remain on hold at the next meeting. The real economy (so far) is strong enough not to justify a rate cut. And the big issues are all on the horizon. Powell has been clear: He does not want to guess what is beyond that horizon, he wants to wait and see. The report is absolutely legitimate. The White House interpretations are a different matter," he stated.
President Trump wants these rate cuts, but he cannot force the issue without causing bigger problems. As tariffs are so chaotic and unpredictable, false rumors have moved the crypto market on several recent occasions.
Investors should remain cautious regarding speculations that seem too good to be true.
The article Trump calls for interest rate cuts amid positive labor market signs was first seen on BeInCrypto Brazil.
