"Lower the rate": Trump calls on Powell to lower interest rates
President Donald Trump urged Fed chairman Jerome Powell to lower the interest rates after a Wednesday report from firm ADP showed weaker-than-expected hiring across the private sector.
"ADP NUMBER OUT!!! "Too Late" Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!," wrote President Trump on Truth Social.
The ADP report shows private payrolls increased by just 37,000 in May, far below the Dow Jones forecast for 110,000 and down from the prior month’s revised reading of 60,000. As CNBC notes, "it was the lowest monthly job total from the ADP count since March 2023." Jesse Cohen, however, commented on the report on X platform stating, "That was the lowest monthly total since February 2022."
Cohen also added that the report "follows a downward revision for April, which added 60,000 jobs, compared to a previously reported increase of 62,000," highlighting the problematic situation on the American job market caused by the slowing labor market.
The report comes two days before the more detailed nonfarm payrolls count from the Bureau of Labor Statistics. This statement is estimated to show a gain of 125,000 and the unemployment rate steady at 4.2%.
According to the White House Press Secretary Karoline Leavitt, President Trump has pushed Fed chairman Powell to lower the interest rates for a very long time, even calling the Federal Reserve chairman to the White House to make such demands. As CNBC reports, the meeting between them has turned "confrontational."
"Unease is the word of the day. Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data," commented on the report ADP economist Nela Richardson. "It can be difficult to make hiring decisions in such an environment," she added.
Fed governor Lisa Cook said on Tuesday: "I see the U.S. economy as still being in a solid position, but heightened uncertainty poses risks to both price stability and unemployment."
Fed officials are expected to meet in two weeks to discuss the matter. Until this time, they are supposed to maintain regarding interest rates.
Source: Truth Social, CNBC, New York Post, Fox News Business
