President Donald Trump has once again turned up the political heat on Federal Reserve Chair Jerome Powell, this time leveraging weaker-than-expected U.S. job growth to demand immediate interest rate cuts. The clash is deepening as economic concerns mount and global monetary policy begins to diverge.
ADP Jobs Shock Sparks Fresh Trump Criticism
The latest trigger came Wednesday morning, when payroll services firm ADP reported that U.S. private-sector employers added just 37,000 jobs in May, far below the 110,000 forecast by economists surveyed by Dow Jones. It’s the weakest reading since March 2023, raising alarms about a potential slowdown in the labor market.
Moments after the data release, Trump blasted Powell on Truth Social:
“ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!
Trump has long used the nickname “Too Late Powell” to criticize the Fed chair’s cautious stance on rate policy, accusing him of reacting too slowly to shifting economic condition
Tense White House Meeting: No Agreement
Behind the scenes, tensions appear to be just as high. According to press secretary Karoline Leavitt, Trump met recently with Powell at the White House, warning him that his refusal to cut interest rates was a “mistake” that could give countries like China an economic advantage. Powell reportedly pushed back.
The Federal Reserve, in a rare public comment on the meeting, stated that Powell reminded the president that:
“Monetary policy must be guided by economic data, not politics.”
Despite the friction, Powell has held the federal funds rate steady in recent months, citing persistent inflation and economic resilience. The Fed’s next major decision will follow the Bureau of Labor Statistics’ employment report, due Friday, which is expected to show 125,000 new jobs—still a slowdown.
The Global Context: Trump Points to Europe
Trump’s frustration is intensified by global comparisons. The European Central Bank (ECB) is widely expected to cut interest rates again this Thursday—its eighth cut since June 2024. As inflation cools across the eurozone, policymakers there are prioritizing growth, a stance Trump argues the Fed should mirror.
With geopolitical tensions, trade uncertainty, and global growth concerns mounting, Trump insists that the Fed’s inaction is making the U.S. less competitive. Though he has recently walked back threats to fire Powell before his term ends in May 2026, Trump continues to publicly signal his dissatisfaction.
What’s Next?
The political pressure on the Fed is unlikely to ease. As the 2026 election cycle heats up, Trump is positioning interest rate policy as a central economic issue. Whether Powell yields to political pressure—or maintains the Fed’s commitment to data-driven policy—could have far-reaching consequences for the U.S. economy and its monetary credibility.
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