Trump Pressures Fed Chair Powell to Cut Rates Following Weak Jobs Report
President Donald Trump renewed his public pressure on Federal Reserve Chairman Jerome Powell to lower interest rates following the release of disappointing employment data from ADP, a private payroll processing firm.
The report showed that US private-sector employers added just 37,000 jobs in May, the weakest reading since March 2023 and significantly below economists’ expectations of 110,000.
Trump responded swiftly to the data, writing on his Truth Social platform:
“ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE.”
He also criticized Powell personally, saying, “He is unbelievable!!!” and pointed out that the European Central Bank (ECB) has cut rates multiple times—nine, by his count—suggesting the US is falling behind in monetary policy adjustments.
The former president has frequently called on the Fed to reduce borrowing costs, arguing that high interest rates are putting the US at a competitive disadvantage globally. According to a statement from the White House, Trump conveyed a similar message directly to Powell during a recent private meeting, telling him that failing to cut rates was a “mistake.” The Federal Reserve, for its part, stated that Powell emphasized the importance of basing monetary policy on objective economic indicators rather than political pressure.
The timing of Trump’s remarks comes just ahead of the more closely watched Bureau of Labor Statistics (BLS) jobs report, due Friday. While the ADP and BLS figures often diverge due to different methodologies, economists see both as complementary in assessing labor market trends. Current forecasts for the BLS report suggest the US economy added about 125,000 jobs in May, with the unemployment rate holding steady at 4.2%.
Market reaction to the ADP report was mixed. The S&P 500 saw modest gains while Treasury yields dipped, reflecting investor speculation that softer labor data could increase the likelihood of a rate cut later this year. As of Wednesday morning, market-based odds of a rate cut by July rose slightly, though the majority of forecasts still anticipate any potential easing to begin in September.
The Federal Reserve has not cut rates since December, citing concerns over inflation and economic uncertainty—some of which stems from Trump’s ongoing trade policies and tariffs. Analysts have noted that businesses are cautious in hiring due in part to those geopolitical and economic factors.
While the ECB appears poised to announce its eighth rate cut since June 2024 in response to subdued growth and easing inflation in the eurozone, the Fed has held firm, reiterating its commitment to data-driven decision-making.
Trump has long clashed with Powell over interest rate policy, at times suggesting he might remove the Fed chair, though legal limitations prevent such a move without cause. In April, Trump indicated he had “no intention” of firing Powell but has continued to express dissatisfaction with the Fed’s current stance.
CNBC, Axios, Forbes, and Investor’s Business Daily contributed to this report.
