Trump Ratchets Up Pressure on Fed for Rate Cuts After May Job Numbers Disappoint

• Trump demands rate cuts after May’s ADP report showed only 37,000 new jobs.
• He accuses Fed Chair Powell of delaying action compared to Europe’s central banks.
• Powell maintains the Fed’s independence and holds rates steady despite political pressure.

U.S. President Donald Trump criticized Federal Reserve Chair Jerome Powell and the central bank’s interest rate policy on Truth Social today, June 4, 2025. His comments followed a sharply disappointing May ADP employment report, which revealed only 37,000 private-sector jobs were added, far short of the 110,000 economists had forecast.

Trump directly blamed Powell for what he termed ignoring clear signs of a weakening economy. He argued that Powell’s inaction was putting additional strain on American households and businesses. According to Trump, the Federal Reserve must respond quickly by cutting interest rates.

Trump Points to Global Rate Cuts

In his statement, Trump drew comparisons between the Fed’s position and that of central banks in Europe, where a few have already lowered interest rates. He accused Powell of lagging behind his global counterparts even as U.S. inflation shows signs of cooling. Trump also claimed that Powell’s refusal to lower interest rates now could aggravate any potential economic slowdown, emphasizing the U.S. economy needs immediate support, not continued policy delays.

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This criticism is consistent with Trump’s previous public statements about Powell, which started during his presidency and have picked up again in recent months as some economic indicators have softened.

Powell Reaffirms Fed’s Independence

Federal Reserve Chair Jerome Powell responded indirectly by reaffirming the Fed’s commitment to data-based decisions. He stated that the central bank would remain independent and avoid political influence. Powell explained that interest rate decisions depend on a full range of economic data, not public pressure.

Despite political commentary, Powell has maintained the current policy stance due to persistent inflation risks. The Federal Open Market Committee (FOMC) has held rates steady, citing the need for more consistent evidence of a slowdown before easing monetary policy.

Powell Holds Firm as ADP Report Sparks Rate Cut Speculation

The ADP report was the weakest monthly reading since January 2021. Combined with soft consumer sentiment and mixed inflation data, the report adds complexity to the Fed’s decision-making process. Traders now speculate whether the central bank will signal a shift at the next FOMC meeting.

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For now, Powell stands firm. But with Trump raising the volume and economic momentum slowing, the Federal Reserve may face increasing calls to act—whether or not it chooses to listen.