Trump Slams Fed’s Inaction, Demands Rate Cuts After Weak Jobs Report

• President Donald Trump sharply criticized Federal Reserve Chairman Jerome Powell on Truth Social, demanding an interest rate cut after ADP reported a weak 37,000 private-sector job gain in May, far below the Dow Jones forecast of 110,000 and the lowest since March 2023.
• Trump’s ongoing pressure on Powell, including a confrontational White House meeting last week, highlights tensions over the Fed’s steady rate policy, which Trump claims disadvantages the U.S. compared to Europe’s nine rate cuts, while Powell insists decisions are data-driven.
• With the European Central Bank expected to cut rates for the eighth time since June 2024, anticipation builds for the U.S. nonfarm payrolls report, projected to show a 125,000 job increase for May, which could shape economic and monetary policy outlooks.

President Donald Trump intensified his public criticism of Federal Reserve Chairman Jerome Powell on Wednesday, demanding an immediate interest rate cut in response to a disappointing ADP private-sector jobs report, which showed a mere 37,000 jobs added in May, the lowest since March 2023 and well below the Dow Jones forecast of 110,000. Trump, posting on Truth Social, called Powell “unbelievable” while once again using the nickname “Too Late” Powell to criticize him.

The president’s remarks, which included a comparison to Europe’s nine rate cuts, reflect ongoing tensions with Powell, underscored by a contentious White House meeting last week where Trump argued that steady rates harm the economy, while Powell emphasized that monetary policy decisions are driven by economic data, not political pressure.

The ADP report’s weak performance has heightened anticipation for the Bureau of Labor Statistics’ nonfarm payrolls report, due Friday, with economists polled by Dow Jones expecting a 125,000 job increase for May, a figure that could further shape perceptions of the U.S. economy’s health. Trump’s frustration with Powell stems from the Fed’s decision to maintain steady interest rates in 2025, following a full percentage point cut in 2024, as Powell and Fed officials advocate a cautious approach amid uncertainties driven by Trump’s tariff policies and global trade dynamics. Despite Trump’s repeated threats to fire Powell, whose term extends to May 2026, the president appeared to soften his stance in April, stating he had “no intention” of removing the Fed chair, though his continued public attacks suggest persistent friction.

In contrast, the European Central Bank is poised to cut rates for the eighth time since June 2024, driven by easing inflation and sluggish growth in the euro zone, highlighting a divergence in monetary policy approaches as global economic uncertainty persists. Trump’s aggressive trade policies, including recent tariff hikes, have raised concerns about inflationary pressures, which Powell has noted could complicate the Fed’s ability to lower rates without risking further economic disruption. The interplay between weak labor market signals, such as the ADP report, and Trump’s push for looser monetary policy underscores a critical moment for the U.S. economy, with the upcoming jobs report likely to influence both market expectations and the ongoing debate between the White House and the Federal Reserve.

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