- Trump blasted Fed Chair Powell again after weak May job growth data from ADP.
- The President urged immediate rate cuts, criticizing Powell for falling behind Europe.
- Despite ongoing pressure, Trump says he won’t remove Powell before his term ends in 2026.
President Donald Trump took another jab at Federal Reserve Chair Jerome Powell on Wednesday, criticizing him for not cutting interest rates fast enough. His latest post on Truth Social followed weak job growth numbers from payroll firm ADP, which showed only 37,000 private jobs added in May—way below expectations. Trump’s reaction? “Too late” and “unbelievable,” as he pointed out that Europe has already lowered rates nine times.
The ADP data disappointed big time, especially since economists had expected around 110,000 jobs to be added. Last month’s already soft April figure was revised even lower, from 62,000 to just 60,000. With the Labor Department’s more detailed jobs report coming this Friday, all eyes are now on how that data might further shape the Fed’s next move.
A Deeper Riff Between Trump and Powell
This isn’t the first time Trump’s gone after Powell, and it likely won’t be the last. He’s repeatedly questioned the Fed’s decision-making and has even demanded Powell step down—claims that’ve sparked plenty of concern on Wall Street. Markets tend to get jittery when political leaders pressure central banks, and Trump’s aggressive stance has already caused a few ripples.
Still, despite the attacks, Trump recently confirmed he doesn’t plan to fire Powell before his term expires in 2026. That may calm some nerves, but the bigger question remains—how much sway does Trump have over U.S. monetary policy?
The Bigger Picture: Rates, Jobs, and 2024
What’s really at stake here is the balancing act between rate policy and the U.S. economy. If hiring keeps slowing, as the ADP numbers suggest, pressure on the Fed to ease up could keep mounting. Trump’s using this moment not just to push a monetary agenda but also to frame economic concerns ahead of the 2024 race.
