Trump Pressures Fed Chair Powell to Cut Interest Rates After Weak Jobs Report
June 4 , 2025
In a heated post on Truth Social, President Donald Trump reignited his campaign to pressure Federal Reserve Chairman Jerome Powell, demanding immediate interest rate cuts following a disappointing May jobs report released by payroll firm ADP.
“ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE,” Trump exclaimed online. The former and current president has been critical of Powell for months, pushing the Fed to ease monetary policy amid global economic uncertainty and slowing domestic job growth.
ADP’s latest data showed that the U.S. economy added just 37,000 private-sector jobs in May—far short of the 110,000 jobs expected by Dow Jones analysts. This marks the weakest performance since March 2023.
A Tense White House Meeting
Just days before the release, Trump met with Powell at the White House to discuss economic strategy. While details remain limited, sources suggest the meeting became confrontational. According to White House Press Secretary Karoline Leavitt, Trump accused Powell of making a “mistake by not lowering interest rates,” arguing that the current policy “puts the U.S. at a disadvantage compared to China and Europe.”
The Federal Reserve later confirmed the meeting, noting that Powell emphasized the importance of basing monetary policy on objective data—not political pressure.
Powell Under Fire
This isn't the first time Powell has drawn Trump’s ire. The president has called Powell a “major loser” and frequently refers to him as “Too Late Powell”—a jab at what Trump sees as the Fed's slow response to changing economic conditions. Though Trump hinted at removing Powell from office, he stated in April he had “no intention” of firing him before his term ends in May 2026.
ADP vs. BLS: What’s Next?
The ADP report is a precursor to the more influential Bureau of Labor Statistics (BLS) jobs report, scheduled for release this Friday. Economists expect the BLS to show a 125,000 job gain for May, but the stark contrast with ADP’s number has raised questions about a potential labor market slowdown.
Although the two reports often differ due to methodology, they collectively help economists paint a broader picture of employment trends across the U.S.
ECB Moves Highlight U.S. Lag
Trump pointed to the European Central Bank’s (ECB) anticipated move to cut interest rates on Thursday—its eighth reduction since June 2024—as proof that the U.S. is falling behind. The eurozone is currently experiencing low inflation and modest growth, prompting further monetary easing.
“Europe has lowered NINE TIMES!” Trump exclaimed, underscoring what he sees as global momentum toward looser financial conditions while the Fed holds steady.
Looking Ahead
With the 2026 midterms on the horizon and economic uncertainty lingering, Trump is banking on lower interest rates to spur growth, boost the stock market, and enhance American competitiveness abroad. However, Powell and the Federal Reserve remain cautious, citing core inflation slightly above target and the unpredictable effects of ongoing global tensions and tariffs.
As central banks around the world take action, all eyes remain on the Fed’s next move—and whether Powell will bend under presidential pressure or maintain his data-driven course.