In a pointed response to disappointing employment numbers, President Donald Trump called on Federal Reserve Chairman Jerome Powell to lower interest rates. The demand came shortly after the payroll processing firm ADP released data showing the slowest growth in private-sector jobs in several years.
“ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE,” Trump posted on Truth Social.
Expressing frustration, Trump characterized Powell’s leadership as “unbelievable,” indicating that he has consistently urged the Fed chairman to implement rate cuts to invigorate economic activity.
Trump further noted, “Europe has lowered NINE TIMES!” underscoring his concern that U.S. monetary policy is lagging behind international trends.
The ADP report revealed a modest increase of just 37,000 jobs in May, significantly underperforming the Dow Jones estimate which projected an increase of 110,000. This figure marks the lowest monthly addition from ADP since March 2023.
The timing of this weak report is critical, as it precedes the Bureau of Labor Statistics’ forthcoming nonfarm payrolls report, which carries considerable weight in economic assessments.
Economists surveyed by Dow Jones anticipate that the BLS report will show an increase of approximately 125,000 jobs for May.
Trump’s meeting with Powell last week at the White House was reportedly tense, with accounts indicating a noticeable clash over economic policy. White House press secretary Karoline Leavitt stated that Trump expressed to Powell that failing to lower rates was detrimental, putting the U.S. at a competitive disadvantage compared to China and other nations. Conversely, the Fed emphasized that Powell maintained that monetary policy should be dictated by economic indicators rather than political pressure.
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