๐จ๐จ: #TRUMP Calls for Aggressive Rate Cut
President Donald Trump has intensified his criticism of the Federal Reserve, labeling it "a disaster" and demanding a significant interest rate cut. Following a disappointing jobs report, Trump took to Truth Social to express his frustration, urging Federal Reserve Chair Jerome Powell to lower the rate.
*Key Points:*
- *Rate Cut Demand:* Trump is calling for a 100 basis point interest rate cut, citing weak job growth and economic slowdown concerns.
- *Criticism of Powell:* Trump has repeatedly pressured Powell to reduce borrowing costs, believing it will stimulate economic growth and offset the impact of his tariffs.
- *Economic Indicators:* The ADP report showed a significant miss in job growth, with only 37,000 private-sector jobs added, far below expectations.ยน
*Market Implications:*
- *Interest Rate Decision:* The Federal Reserve's next policy meeting is scheduled for June 17-18, where they'll decide on potential rate cuts.
- *Economic Outlook:* Trump's demands for rate cuts are driven by concerns about the US economy's performance, with some analysts warning of potential financial instability.
*Trump's Stance:*
- *Public Pressure:* Trump has consistently used public statements to pressure the Federal Reserve, highlighting his desire for lower interest rates to boost the economy.
- *Tariffs and Economy:* Trump's economic policies, including tariffs, have contributed to uncertainty and slower growth, according to the Federal Reserve.