President Donald Trump is ramping up his criticism of Federal Reserve Chair Jerome Powell, using the latest jobs data as ammunition. After the ADP report showed only 37,000 private sector jobs added in May, far below the expected 110,000, Trump took to Truth Social to express his frustration.
*"ADP NUMBER OUT!!! 'Too Late' Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!"*
This public spat comes after a White House meeting between Trump and Powell, where the president reportedly told Powell he was "making a mistake by not lowering interest rates." Powell pushed back, emphasizing that monetary policy decisions are guided by economic data, not politics.¹
*The Fallout*
- US stocks plummeted, with the S&P 500 dropping 2.4% and the Dow Jones Industrial Average falling 2.5%
- The dollar index hit a three-year low, while gold prices soared to a record high of $3,452.30 per ounce
- Investors are growing wary of US assets, seeking safer havens amidst Trump's attacks on Powell
*The Battle Lines are Drawn*
Trump's criticism of Powell centers on the Fed's decision to hold interest rates steady, despite weakening job data and global uncertainty. Meanwhile, the European Central Bank is expected to cut rates again, marking its eighth cut since June 2024. Trump's frustration stems from the perception that the Fed is out of step with international economic trends.² ³
*What's Next?*
As the Federal Reserve navigates these challenges, markets will be watching closely for any signs of rate cuts or changes in monetary policy. One thing is certain: Trump's attacks on Powell show no signs of abating. Will the Fed respond to pressure, or stick to its data-driven approach? The outcome remains uncertain, but one thing is clear – the battle between Trump and Powell is far from over.#TrumpTariffs #BinanceAlphaAlert #MarketMoves #bitcoin $BTC
