On Friday, President Donald Trump reiterated his call for the U.S. Federal Reserve to lower interest rates, buoyed by an unexpectedly strong jobs report for April.
“Just like I said, and we’re only in a TRANSITION STAGE, just getting started!!!,” Trump declared in an enthusiastic post on Truth Social shortly after the release of the latest nonfarm payrolls data.
“Consumers have been waiting for years to see pricing come down. NO INFLATION, THE FED SHOULD LOWER ITS RATE!!!,” he added emphatically.
The Bureau of Labor Statistics revealed that nonfarm payrolls grew by a seasonally adjusted 177,000 jobs in April, exceeding the Dow Jones prediction of 133,000. However, this figure trailed the downwardly adjusted total of 185,000 jobs added in March.
In the aftermath of the report, stock futures experienced an uptick.
This latest post underscores Trump’s ongoing attempts to sway the Federal Reserve’s decision-making, putting into question the central bank’s traditional autonomy from presidential influence.
Moreover, it hints at a notable shift in Trump’s rhetoric toward Fed Chairman Jerome Powell, whose position appeared precarious not long ago.
Historically, Trump has been vocally critical of Powell and has urged him to lower rates to promote economic growth. Economic advisor Kevin Hassett noted last month that the White House was contemplating potential regulations allowing Trump to remove Powell.
Powell has asserted that Trump lacks the legal authority to dismiss him prior to the expiration of his term in May 2026. Nonetheless, concerns about Trump possibly appointing a successor willing to yield to political pressure over interest rates have unsettled global markets and investors.
On April 21, these apprehensions led to a significant sell-off, causing both major indexes and the U.S. dollar to decline sharply.
Since then, Trump has emphasized that he has “no intention” of firing Powell and has toned down his critique.
At a rally in Michigan on Tuesday, Trump acknowledged having a Fed official who he believes is underperforming, though he did not specifically name Powell.
“I want to be very nice and respectful to the Fed,” he stated. “You are not supposed to criticize the Fed; you are supposed to let him do his own thing, but I know much more than he does about interest rates, believe me.”
Trump’s comments on Friday notably contrasted with his reaction to Wednesday’s troubling news that the U.S. economy had contracted for the first time since 2022.
In that instance, Trump attributed the disappointing first-quarter GDP figures to former President Joe Biden, asserting, “he left us with bad numbers.” Furthermore, he indicated he might hold Biden accountable again for future economic challenges.
— Finance Newso’s Jeff Cox contributed to this report.
