President Donald Trump has once again targeted Federal Reserve Chair Jerome Powell, using recent employment data as a basis for his criticism.
Employment Data and Trump's Reaction
On Wednesday, Trump posted on Truth Social, expressing the need for the Fed to lower interest rates in light of the ADP report showing that US private employers added just 37,000 jobs in May, far below the expected 110,000. Trump described Powell as 'unbelievable,' pointing out that Europe has lowered rates nine times.
Trump and Powell's Meeting
Recently, Trump met with Powell at the White House to discuss the economy. According to Trump's press secretary Karoline Leavitt, the president stated that Powell was 'making a mistake by not lowering interest rates' and argued that Powell's inaction was giving countries like China a competitive edge. Powell responded by reminding Trump that 'monetary policy must be guided by economic data, not politics.'
International Context and Fed Policy
Trump has repeatedly criticized Powell, calling him a 'major loser' and 'Too Late.' He has hinted at firing Powell before his term ends in May 2026, despite the law stating that the president cannot remove him. Trump has pointed out that while European countries are cutting rates in response to slowing growth, the Fed remains stagnant despite weakening job data and growing global risks.
Trump's criticism of Jerome Powell highlights the strained relationship between the president and the Federal Reserve, as well as the increasing dissatisfaction with economic policy amid global instability.
