- President Trump urged the Federal Reserve to lower interest rates, citing the strong April jobs report of 177,000 nonfarm payrolls, which exceeded the Dow Jones estimate of 133,000.
- In a Truth Social post, Trump highlighted falling prices for gasoline at $1.98 per gallon, groceries, and energy, alongside tariff-driven revenue, as evidence of an economy ready for rate cuts.
- Trump’s push for lower rates continues his public feud with Fed Chair Jerome Powell, with recent White House explorations into rules for Powell’s removal intensifying the pressure.
President Donald Trump’s latest push for lower interest rates from the U.S. Federal Reserve, articulated in a Truth Social post on Friday, underscores his ongoing campaign to shape monetary policy in favor of economic stimulus. Citing a robust labor market, with nonfarm payrolls rising by a seasonally adjusted 177,000 in April according to the Bureau of Labor Statistics, Trump highlighted the figure as evidence of economic vigor. The job growth, which exceeded the Dow Jones estimate of 133,000, was paired in his narrative with falling consumer prices, including gasoline at $1.98 per gallon, declining grocery and energy costs, and reduced mortgage rates. Trump attributed these gains to billions of dollars in tariff revenue, framing the economy as in a “transition stage” with no inflation, and urged the Federal Reserve to cut rates to sustain momentum.
The April jobs report, a key indicator of economic health, reflects a labor market that continues to perform strongly despite global trade tensions and domestic policy shifts. The 177,000 jobs added signal employer confidence, particularly in sectors navigating the effects of Trump’s tariff policies. His claim of “no inflation” aligns with recent data showing moderating price pressures, though the Federal Reserve remains cautious, balancing growth against the risk of rekindling inflationary trends. Trump’s assertion that tariff revenues are fueling economic gains oversimplifies the fiscal picture, as trade duties can elevate consumer costs in some sectors while generating government revenue. Nonetheless, his focus on declining prices for essentials like gasoline and groceries resonates with consumers, who have faced elevated costs in recent years.
Trump’s call for rate cuts reignites his longstanding tension with Federal Reserve Chair Jerome Powell, a dynamic marked by public criticism and policy disputes. Since appointing Powell in 2018, Trump has frequently lambasted the Fed’s rate hikes, arguing they stifled growth during his first term. Powell, in turn, has defended the Fed’s independence, emphasizing data-driven decisions over political pressures. This friction escalated recently, with economic aide Kevin Hassett revealing last month that the White House was exploring legal mechanisms to remove Powell, a move that would challenge decades of precedent protecting the Fed’s autonomy. Such efforts remain speculative, as dismissing a Fed chair requires cause and faces significant legal and political hurdles.
The broader context of Trump’s remarks reveals his intent to leverage economic wins, like the April jobs report, to pressure the Fed into aligning with his growth agenda. The 177,000 jobs added, while a positive signal, come amid mixed indicators, including tariff-driven uncertainties that could temper business investment. Trump’s narrative of an economy “just getting started” aims to sustain public optimism, but the Fed, tasked with dual mandates of price stability and maximum employment, will likely prioritize incoming data over political rhetoric. As Powell and the Federal Open Market Committee prepare for their next meeting, the interplay between Trump’s public exhortations and the Fed’s measured approach will continue to shape the economic discourse.
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