#trump
President Donald Trump has intensified his criticism of Federal Reserve Chairman Jerome Powell following a disappointing jobs report. On June 4, 2025, Trump posted on Truth Social:
> “ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!”
This outburst came after ADP reported that U.S. private employers added only 37,000 jobs in May, significantly below the expected 110,000 and marking the weakest figure since March 2023.
Trump's frustration with Powell isn't new. He has consistently pressured the Fed to lower interest rates, arguing that high rates hinder economic growth and give other countries a competitive edge. Despite a recent meeting between Trump and Powell at the White House, the Fed has maintained its stance on keeping rates steady, emphasizing that monetary policy decisions are guided by economic data, not political pressure.
The president also pointed to Europe as a benchmark, noting that the European Central Bank has implemented multiple rate cuts to stimulate growth. However, Powell and other Fed officials have expressed caution, citing concerns about inflation and the potential impacts of ongoing trade tensions.
While Trump has previously suggested he might remove Powell from his position, legal constraints and market considerations have so far prevented such action. The Supreme Court recently reinforced that the president lacks the authority to dismiss the Fed Chair without cause.
As the debate over monetary policy continues, the Fed remains focused on balancing economic growth with inflation control, while navigating political pressures from the administration.
