‘Powell is impossible’: Trump slams Fed chair for being ‘too late’ on rate cuts after US hiring hits 2-year low

US President Donald Trump on Wednesday redoubled his calls for Federal Reserve Chair Jerome Powell to lower interest rates, noting that payroll processing firm ADP reported that job creation slowed in May. "ADP number out. 'Too Late' Powell must now lower the rate. He is unbelievable. Europe has lowered nine times," Trump said in a Truth Social post. 

ADP reported that US private payrolls increased far less than expected in May, increasing by only 37,000 jobs after a 60,000 rise in April that was revised downward. The data came ahead of a more comprehensive employment report that will be released on Friday by the Labor Department's Bureau of Labor Statistics.

Trump vs Powell on rate cuts

In his post on social media, Trump remarked that Powell’s rate cut announcement is already “too late” in the context of the ADP hiring data. Trump further compared the interest rates scenario with their counterpart across the Atlantic and commented, “Europe has lowered nine times”.

Trump, a Republican, has hammered Powell for months in personal attacks, with his calls for the Fed chair's resignation weighing on US stocks and financial markets. Trump's repeated attacks have raised questions about the US central bank's independence under the Trump administration, although the US president has said he would not remove Powell before his term ends in May 2026.

US Fed interest rate

The US Federal Reserve's rate setting committee is scheduled to meet on June 17-18 and announce the monetary policy decision. The central bank kept interest rate steady at 4.25-4.5 per cent range in its May meeting for the third time in a row, highlighting the uncertainty over the health of the US economy from the tariff wars sparked by Trump. 

The Fed has yet to cut interest rates this year after slashing them through the end of 2024. Part of the reason for the pause is that the Fed wants to see how much Trump’s tariffs will hurt the economy and raise inflation. While lower interest rates could boost the economy, they could also give inflation more fuel.

Powell had then said the risks of higher unemployment and inflation have risen, and the current policy stance leaves the US Fed is “well positioned” to address economic developments in a timely manner. After Trump’s first meeting with the US Fed Chair on May 29, the US Federal Reserve stated that the two discussed the economy, but not Powell’s outlook for interest rates.