Former U.S. President Donald Trump has again attacked Federal Reserve Chair Jerome Powell. He wants Powell to cut interest rates immediately after a poor jobs report in May.
Trump reacted to data from Automatic Data Processing (ADP), which showed non-farm employment rose by only 37,000 in May. This is far below the market’s expectation of 111,000 and the lowest job growth since March 2023.
“ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE,” Trump wrote on his social media page.
He followed up with another post: “He is unbelievable!!!” referring to Powell, whom he has often criticised. Trump blamed the Fed’s decision to hold rates steady for slow economic progress.
Trump also pointed out that Europe is moving faster on rates. “Europe has lowered NINE TIMES!” he said, pressuring the U.S. Fed to act.
He has used several insults against Powell in recent years, calling him “a fool” and “a major loser.” At one point during his presidency, Trump hinted he might fire Powell before his term ended. But later, he said he had “no intention” of doing so.
Federal Reserve Maintains Position Despite Pressure
Despite repeated criticism, Powell and the Federal Reserve have held the policy interest rate steady for five consecutive meetings. The Fed argues that the current rate policy is necessary to manage inflation and support long-term growth.
So far, Powell has not responded publicly to Trump’s latest remarks.
Meanwhile, the European Central Bank (ECB) is preparing to cut its main interest rate. Economists expect a 25-basis-point cut following a drop in the eurozone’s annual inflation to 1.9% in May. This is just below the ECB’s 2% inflation target.
The move would mark the ECB’s ninth rate cut, reflecting growing confidence that inflation is under control in Europe.
The contrast between U.S. and European central bank actions has renewed debate over the Fed’s response to slowing job growth and economic signals.
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