Trump Slams ‘Too Late’ Powell As Job Growth Craters And Fed Still Refuses To Cut Rates – Financial Freedom Countdown
Private employers added just 37,000 jobs in May, the smallest increase since March 2023, according to the ADP National Employment Report released June 4.
This figure fell far below economists’ expectations of 110,000 new jobs and immediately sparked a fresh round of criticism from President Donald Trump.
Trump Again Demands Powell Lower Rates
Moments after the ADP report was released, Trump blasted Federal Reserve Chair Jerome Powell on Truth Social: “’Too Late’ Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!”
Trump has long insisted that high interest rates are harming the economy, especially amid global uncertainty.
Manufacturing Jobs Continue to Shrink
While the leisure, hospitality, and financial sectors added jobs, the manufacturing sector; a key target of Trump’s trade and economic policies lost 3,000 jobs in May.
This adds to concerns that Trump’s sweeping tariffs may be weighing down industrial employment, even as he touts them as a tool for domestic revitalization.
Small Businesses Hit Hardest
Small businesses shed 13,000 jobs in May, according to ADP’s breakdown.
With credit tightening and interest rates still elevated, small employers appear particularly vulnerable to broader economic slowdowns.
Trump-Powell Meeting Turns Tense
Trump met face-to-face with Powell at the White House on May 29 to urge immediate rate cuts. White House press secretary Karoline Leavitt later said Trump told Powell he was “making a mistake by not lowering interest rates,” adding that U.S. policy was trailing behind China and Europe.
Fed Maintains Independence—for Now
The Fed has so far ignored Trump’s pressure campaign.
In a statement following their meeting, Powell emphasized that monetary policy decisions would be based solely on incoming economic data. He made no promises and reiterated that politics would not shape the Fed’s decisions.
Europe Continues to Ease
Trump’s comparison to Europe isn’t unfounded.
The European Central Bank is expected to cut interest rates for the ninth time since June of last year. Inflation has cooled across the euro zone, and economic growth has remained subdued, justifying the rate cuts.
Trump’s Nickname for Powell: “Too Late”
Trump has increasingly referred to Powell as “Too Late,” a derisive nickname that reflects his belief the Fed is acting too slowly to protect the U.S. economy. Trump has used Powell as a scapegoat when economic data disappoints.
Labor Market Weakness Clouds Recovery Picture
The Labor Department’s April report already showed troubling signs: 1.7 million Americans have been unemployed for over six months; the highest long-term unemployment figure in more than two years.
May’s data, if corroborated by government figures, could signal deeper challenges.
Official Jobs Report Still to Come
The more comprehensive nonfarm payrolls report from the Bureau of Labor Statistics will be released June 6. Economists expect it to show a gain of about 125,000 jobs, including public sector employment.
However, that would still mark a noticeable slowdown.
ADP vs. BLS: Not Always in Sync
Economists caution that ADP’s report doesn’t always align with the Labor Department’s.
Since mid-2022, the average difference between ADP’s and BLS’s private-sector job tallies has been about 84,000 jobs.
Powell’s Job Safe—For Now
Despite threats and public frustration, Trump in April said he has “no intention” of firing Powell before his term ends in 2028. But his rhetoric continues to stir speculation over whether he might try to remove or sideline the Fed chair if rate cuts don’t materialize.
Legal Barriers to Removing Powell
A recent Supreme Court opinion complicated any effort to fire Powell. The justices suggested the Fed is “a uniquely structured, quasi-private entity,” making it difficult for presidents to exert direct control over its leadership.
Uncertainty Reigns Over Economic Outlook
With global tariffs, uneven job growth, and stubborn inflationary pressures, the Fed faces a complex landscape.
Trump’s demands may resonate with voters, but Powell and his colleagues are more focused on data than deadlines.
What Comes Next?
All eyes will be on the Fed’s June 17–18 policy meeting.
Unless the upcoming jobs report or inflation data shows a dramatic turn, analysts expect the Fed to hold rates steady; regardless of Trump’s pressure campaign.
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John Dealbreuin came from a third world country to the US with only $1,000 not knowing anyone; guided by an immigrant dream. In 12 years, he achieved his retirement number.
He started Financial Freedom Countdown to help everyone think differently about their financial challenges and live their best lives. John resides in the San Francisco Bay Area enjoying nature trails and weight training.
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