Donald Trump Criticizes Jerome Powell After Weak Jobs Report, Calls for Rate Cuts

On June 4, 2025, former President America Donald Trump made a post on the social media platform Truth Social, strongly criticizing the Chairman of the Federal Reserve America (Fed), Mr. Jerome Powell, along with the current interest rate policy of the central bank. These statements were made right after the private sector jobs report released by ADP for May recorded only 37,000 new jobs, far lower than the experts' forecast of 110,000. Trump criticized Powell for "ignoring clear signs of a weakening economy," arguing that the delay in adjusting interest rate policy is putting an additional burden on American households and businesses. He emphasized that the Fed needs to act immediately by lowering interest rates to support the economy. Compared to Europe, Trump believes that the Fed is lagging behind the world. In his article, Trump also emphasized the difference between the policies of the Fed and the central banks in Europe – where some countries have begun to lower interest rates amidst cooling inflation. He accused Powell of lagging behind his international counterparts, and if the Fed continues to maintain high interest rates, it could lead the American economy into a deeper recession. Trump warns that delaying the easing of monetary policy will exacerbate the situation, especially as recent economic data sends warning signals. These remarks follow a long series of criticisms that Trump has directed at Powell since his presidency, and have intensified recently as economic indicators begin to show signs of weakness. Chairman Powell reaffirms the independence of the Fed In response to political comments, Chairman Jerome Powell did not directly answer but reiterated that the Fed will make decisions based on objective economic data and will not be influenced by political pressure. He affirmed that the Fed will maintain its independence and continue to monitor all economic indicators before making any changes to policy. Despite rising political pressure, Mr. Powell still defended the decision to maintain interest rates amid ongoing inflation risks. The Federal Open Market Committee (FOMC) remains cautious, requiring clearer evidence of the economic slowdown trend before considering interest rate cuts. The ADP employment report has sparked speculation about the Fed's potential shift. The ADP employment report for May was the worst data since January 2021, combined with weak consumer sentiment and inconsistent inflation data, complicating the Fed's policy outlook. In the financial markets, investors have begun to speculate about the possibility that the Fed will change its stance at the upcoming FOMC meeting. Meanwhile, Mr. Powell remains steadfast in his position. However, with Trump continuously applying pressure and the economic recovery stalling, the Federal Reserve may face increasing pressure from public opinion and politicians — regardless of whether they decide to take action or not.