Trump calls Powell 'unbelievable!!!' as he renews call for lower rates

President Donald Trump renewed his call for Federal Reserve Chairman Jerome Powell to lower interest rates as a new report showed weakness in the job market. "'Too Late' Powell must now LOWER THE RATE," Trump posted Wednesday on Truth Social. "He is unbelievable!!! Trump in his post also referenced the new report out Wednesday showing private-sector hiring growth fell sharply last month. Just 37,000 jobs were created in May, according to the ADP National Employment Report, the smallest increase in private payrolls since March 2023. That’s far fewer than the 114,000 expected by economists and below the 60,000 new jobs added in April. The ADP report comes ahead of the Labor Department’s jobs report due out Friday. Economists estimate that report will show that 130,000 jobs were created last month —down from 177,000 in April— with the unemployment rate holding steady at 4.2%. Powell in 2025 has repeatedly urged caution and patience on rates, saying he expects Trump's tariffs to push inflation higher and drag down growth — putting the Fed in a challenging spot. Federal Reserve Chair Jerome Powell at the Thomas Laubach Research Conference on May 15, in Washington, DC. (Photo by Andrew Harnik/Getty Images) · Andrew Harnik via Getty Images Last month the central bank elected to keep its benchmark interest rate unchanged in a range of 4.25%-4.50%. Its next policy meeting is June 17-18, and investors don't expect any change at that gathering. Powell met with Trump in person last Thursday, and the White House said the president told the central bank boss that he is making a mistake by not lowering rates. The face-to-face encounter follows months of Powell criticism from Trump, who has called Powell a "major loser," and a "fool" who "doesn't have a clue." A divide is emerging among Powell's fellow policymakers about whether to hold rates steady for some time or get more comfortable about cuts later this year as officials try to determine whether any inflation coming from President Trump's tariffs will prove to be longer-lasting. Some policymakers are arguing for "looking through" the impact of the duties as temporary, a stance that would leave the door open for cuts. Many on the rate-setting committee, however, believe there is a risk that inflation from tariffs could become more persistent. The patient approach by the U.S. central bank contrasts with foreign central banks like the European Central Bank, which has cut rates seven times and is set to cut rates again on Thursday in a little more than a year. Though investors expect Thursday’s cut to be among the last in this string unless the eurozone economy faces recession.