Trump Declares “Too Late” for Powell, Demands Rate Cuts After Shockingly Weak Jobs Report
Washington D.C. – President Donald Trump has once again taken aim at Federal Reserve Chairman Jerome Powell, declaring it “Too Late” and insisting Powell “must now LOWER THE RATE” following the release of a surprisingly weak private sector jobs report for May 2025.1 The call, made on Truth Social, escalates Trump’s ongoing criticism of the central bank’s monetary policy as economic signals appear to be faltering.
The catalyst for Trump’s latest salvo was the ADP National Employment Report released on Wednesday, June 4, 2025, which revealed that private sector employment increased by a mere 37,000 jobs in May.3 This figure starkly missed economists’ expectations, which had forecasted a gain of around 110,000 to 115,000 jobs, and marked the slowest pace of job growth since March 2023.4 The report immediately fueled concerns about a cooling labor market and the broader health of the U.S. economy.5
In his characteristic direct style, Trump posted: “ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!”
The former president has been a vocal critic of Powell, whom he appointed, for not lowering interest rates more aggressively, arguing that higher rates are stifling economic growth.6 His reference to European central banks highlights a diverging monetary policy path, with some international counterparts having already initiated rate cuts.7
The May ADP figures showed a significant slowdown from April’s downwardly revised gain of 60,000 jobs.8 According to ADP, the service-providing sector added 36,000 jobs, driven primarily by leisure and hospitality (+38,000) and financial activities (+20,000).9 However, these gains were partially offset by losses in professional/business services (-17,000) and education/health services (-13,000).10 The goods-producing sector saw a marginal decline of 2,000 jobs.11
Nela Richardson, chief economist at ADP, commented on the findings, stating, “After a strong start to the year, hiring is losing momentum.”12 She also noted that “Pay growth, however, was little changed in May, holding at robust levels for both job-stayers and job-changers.”13 Annual pay for job-stayers was up 4.5%, while those who changed jobs saw a 7.0% increase.14
[Detailed breakdowns of the ADP report are available on PR Newswire and the ADP Employment Report website.]
The Federal Reserve, tasked with a dual mandate of maximizing employment and maintaining stable prices, has been holding its benchmark federal funds rate steady in a target range of 4.25% to 4.50% (with the effective rate around 4.33% as of early June 2025).15 This stance has been aimed at combating persistent inflationary pressures that emerged over the past few years.
Minutes from the Federal Open Market Committee’s (FOMC) May 6-7 meeting revealed that officials remained cautious, with “almost all” participants seeing a risk that “inflation could prove to be more persistent than expected.” They also acknowledged that “uncertainty about their economic outlooks as unusually elevated,” partly due to potential effects of tariff policies.16 The Fed has consistently emphasized a data-dependent approach to future policy decisions.17
[The Federal Reserve’s latest policy statements and economic projections can be accessed on the Federal Reserve Board’s website. FRED also provides data on the Federal Funds Effective Rate.]18
The weak ADP report has intensified scrutiny on the upcoming official U.S. Bureau of Labor Statistics (BLS) employment report, due on Friday, June 7, 2025. The BLS data provides a more comprehensive overview of the labor market, including government hiring and unemployment rates. Should the BLS figures confirm a significant slowdown, pressure on the Federal Reserve to reconsider its interest rate path could mount.
However, economists often caution against placing too much weight on a single ADP report, as it can sometimes diverge from the BLS data. Nevertheless, the sharp miss in May’s private payrolls has undeniably caught the attention of markets and policymakers alike.
Trump’s pointed criticism of Powell is not new; throughout his presidency and beyond, he has frequently sought to influence Fed policy, breaking with the traditional deference shown to the central bank’s independence.19 His latest comments are likely to resonate with those who believe the Fed’s current policy is overly restrictive, particularly if subsequent economic data points towards a more pronounced slowdown.
As the week progresses, all eyes will be on the forthcoming BLS jobs report and any subsequent commentary from Federal Reserve officials as they navigate the complex interplay of inflation risks and emerging signs of economic weakness. The debate over the appropriate course for U.S. monetary policy, now amplified by Trump’s “Too Late” declaration, is set to continue.
Sources
Trump calls on ‘Too Late’ Powell to lower interest rates after dismal ADP jobs report
FRED – Federal Reserve Bank of St. Louis
Economic Release Calendar – ADP National Employment Report | FRED | St. Louis Fed
Wednesday April 30, 2025 Updated. 7:15 am. ADP National Employment Report. Wednesday June 04, 2025.
