U.S. President Donald Trump renewed his call today, Friday, for the U.S. Federal Reserve to lower interest rates, following the release of the non-farm payroll report for April, which came in better than expected.
Trump wrote in an enthusiastic post on his platform "Truth Social" just minutes after the report was released: "As I said exactly, we are still in the transition phase; we are still at the beginning!!!"
He added: "Consumers have been waiting for years for prices to drop. There is no inflation; the Federal Reserve should lower the interest rate!!!"
The Bureau of Labor Statistics reported on Friday morning that non-farm payrolls increased by 177,000 jobs after seasonal adjustment in April, exceeding Dow Jones estimates that had predicted 133,000 jobs. However, the number was lower than the downwardly revised figure for March, which was 185,000 jobs.
This post reflects Trump's ongoing attempts to influence the decision-making process within the central bank, thereby challenging a longstanding tradition of the Federal Reserve's independence from the executive branch.
The post also shows that Trump is softening his tone towards Federal Reserve Chairman Jerome Powell, who had previously been sharply criticized by the president, with his position described as threatened.
Trump has long criticized Powell and repeatedly pushed for interest rate cuts to boost economic growth. Last month, economic advisor Kevin Hassett stated that the White House was considering rules that would allow the president to dismiss Powell.
However, Powell confirmed that Trump does not have the legal authority to dismiss him before his term as governor ends in May 2026. Nevertheless, concerns that Trump may seek to replace him with someone more responsive to political pressures regarding interest rates have raised concerns among markets and investors worldwide.
On April 21, these concerns led to a wave of selling in the markets, during which the major indexes and the U.S. dollar fell on the same day.
Since then, Trump has announced that he "does not intend" to dismiss Powell and has begun to soften his criticisms of him.
Trump said at a campaign rally in Michigan on Tuesday: "I have someone at the Federal Reserve who is not doing a good job at all," without mentioning Powell by name.
He added: "I want to be nice and respectful towards the Federal Reserve. You're not supposed to criticize the bank, but let it do its job, but I know a lot more about interest rates than he knows, believe me."