Donald Trump is ramping up his criticism of Federal Reserve Chair Jerome Powell, citing the latest jobs data as evidence that interest rates should be lowered. The ADP report showed only 37,000 new private sector jobs in May, far below the expected 110,000. Trump took to Truth Social, saying "‘Too Late’ Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!”
Key Points of Contention:
Interest Rates: Trump believes the Fed should lower interest rates to boost economic growth, while Powell maintains that monetary policy should be guided by economic data, not politics.
Global Comparison:
Trump points to Europe's recent rate cuts (eight times since June 2024) as proof that the Fed is out of step, citing cooling inflation and sluggish growth in the eurozone.
Job Market:
The US job market has shown signs of weakness, with the ADP report's low job numbers adding to Trump's frustration.
Powell's Response and Trump's Threats
- Powell pushed back against Trump's criticism, reiterating that monetary policy decisions are data-driven, not politically motivated.
- Trump has previously hinted at firing Powell before his term ends in May 2026, but later walked back the threat, saying he had "no intention" of doing so ¹.
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