Former President Donald Trump is once again turning up the pressure on Federal Reserve Chair Jerome Powell—this time over weaker-than-expected U.S. jobs data. In a fiery post on Truth Social, Trump blasted Powell for holding interest rates steady, writing:
> “ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!”
The remarks came after the ADP report showed just 37,000 private-sector jobs added in May, well below the 110,000 expected. It’s the weakest reading since March 2023, amplifying fears of a slowing U.S. labor market just days ahead of Friday’s official jobs report from the Bureau of Labor Statistics.
A Standoff at the Fed
Despite the mounting data, Powell isn’t budging. The Fed chair reportedly met with Trump at the White House recently, but the conversation was tense. According to Trump’s team, he accused Powell of “handcuffing” the U.S. economy while China and Europe move ahead with rate cuts.
The Fed, however, maintains that its policy is guided strictly by economic data—not political pressure. In a rare public response, the central bank stated that Powell “reiterated the importance of monetary independence.”
Crypto Markets Watch Closely
For crypto investors, the stakes are high. Persistent high interest rates have historically suppressed risk-on assets like Bitcoin (BTC) and Ethereum (ETH). Any pivot from the Fed could provide tailwinds for the broader crypto market, potentially reigniting momentum.
Trump’s focus on rate differentials is particularly relevant for crypto traders. The European Central Bank (ECB) is expected to cut rates again on Thursday—its eighth reduction since June 2024—in response to softening inflation and sluggish growth across the eurozone.
This divergence in monetary policy between the U.S. and Europe is driving volatility in currency and crypto markets alike, with the dollar remaining strong and liquidity flowing out of altcoins in favor of yield-bearing instruments.
Political Risk and Monetary Policy
Trump has made Powell a regular target since re-entering the Oval Office. Despite backtracking on threats to fire the Fed chair, his rhetoric signals ongoing tension between fiscal and monetary policy. That uncertainty adds another layer of complexity for markets already grappling with global trade friction, tariffs, and regional conflicts.
For crypto investors, the key takeaway is clear: Fed policy isn't just about inflation anymore—it's political, global, and high-stakes. And until Powell makes a move, digital assets may remain in a holding pattern.