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The president of the American federal reserve, Jerome Powell, leaves after held a press conference after a two-day meeting of the Federal Committee of the Open Market Policy in Washington, DC, United States, May 7, 2025.
Kevin Lamarque | Reuters
President Donald Trump Wednesday, the president of the federal reserve urged angrily Jerome Powell To reduce interest rates, a few minutes after the ADP pay office reported its lowest private sector employment number In the years.
“ADP Number Out !!! ‘Too Late’ Powell must now reduce the rate,” wrote Trump on Social truth.
“It is incredible !!!” The president said about the President of the Central Bank, which he has often forced to put pressure on borrowing rates in the hope of stimulating economic growth.
Trump added: “Europe has lowered nine times!”
ADP report has shown that private payrolls checked only 37,000 in May, well below Dow Jones forecasts of 110,000.
The count was the lowest monthly reading of the ADP since March 2023.
The weak result occurred two days before the Bureau of Labor Statistics published its own monthly report on non -enlarged American pay, which is much more closely monitored than ADP figure.
The economists interviewed by Dow Jones expect the next report to show an increase of 125,000 jobs for May.
Trump met Powell At the White House last week to discuss the economy, but the readings on both sides suggest that the private meeting has become conflictual.
The white house press secretary Karoline Leavitt told Powell that he “made a mistake by not reducing interest rates, which puts us into economic disadvantage for China and other countries”. The Fed said that Powell stressed Trump that monetary policy should be guided by economic data, not on politics.
Trump attacked Powell regularly since his resumption of the office, calling him “major loser” and the mark with the derisory nickname “too late” as a criticism of his decision continues to hold stable rates.
Trump has repeatedly left that he was considering Pull the fed chair Before the expiration of his mandate in May 2026, even if Powell argued that the president cannot legally withdraw him.
Trump appeared at to move back From his threat in April, saying that he had “no intention” to dismiss Powell. But he continued to publicly express the frustration towards the Fed chair.
As Powell keeps his powder dry, the European Central Bank Thursday is likely to reduce rates again, marking the eighth decline since last June.
The expected decision occurs when the euro zone experiences the softening of inflation and lukewarm growth, creating more interest rate drops, even though Trump’s mercurial prices and other geopolitical forces stir up global economic uncertainty.
