US President Donald Trump is pressuring Federal Reserve Chair Jerome Powell to lower interest rates, minutes after an economic report showed sluggish private sector hiring in May. The ADP payrolls company reported 37,000 new jobs added, marking the second consecutive month of muted hiring.
Trump’s comments come as businesses have expressed concerns about hiring due to the ongoing trade war and uncertainty around trade policy. However, the Fed has maintained its stance on keeping interest rates steady, citing the economy’s underlying resilience.
The report suggests that Trump may use Powell as a scapegoat if the economy slows down. Economists expect 125,000 jobs were added in May, which is still considered a healthy rate of hiring.
Trump’s comments have sparked debate about the Fed’s policy decisions and their impact on the economy. The Fed has cut interest rates three times last year, but these cuts were made to support a weakening economy in Europe, not due to domestic concerns. With the US trade war showing signs of slowing down private sector hiring, it remains to be seen whether the Fed will adjust its stance.
Source: https://www.axios.com/2025/06/04/trump-powell-federal-reserve-rates