Trump Pressures Fed After Weak Job Growth

The ADP National Employment Report showed U.S. private sector employers added only 37,000 jobs in May, marking the weakest growth since early 2023. President Donald Trump intensified pressure on Federal Reserve Chair Jerome Powell, calling for immediate interest rate cuts and citing the burden of high interest payments on federal debt and mortgage rates, as well as Europe’s recent rate reductions. Despite these calls, the Fed has kept rates steady, pointing to ongoing inflation and uncertainties from trade policies and tariffs. Economists indicate the weak jobs data has increased the chances of a rate cut but expect the Fed to wait for more comprehensive Labor Department data before making any moves. The slowdown has particularly affected manufacturing and small businesses, raising concerns about the durability of the economic recovery. Market expectations for a Fed rate cut have now shifted toward later in the year as the central bank remains cautious.