President Trump demanded a rate cut from Fed Chair Jerome Powell on Wednesday after ADP reported its weakest private-sector job growth in over a year, according to CNBC. ADP reported that private payrolls rose by only 37,000 in May, missing the Dow Jones forecast of 110,000. This marked the weakest monthly gain since March 2023. Trump blasted Fed Chair Jerome Powell on Truth Social, demanding a rate cut, following the weak ADP jobs report. He criticized Powell for inaction and pointed to Europe’s nine rate cuts as a contrast. The weak ADP report was released two days ahead of the more closely watched U.S. nonfarm payrolls report from the Bureau of Labor Statistics. The president, who met with Powell last week in a reportedly tense exchange, warned that the Fed’s refusal to cut rates puts the U.S. at a disadvantage. The Fed responded that monetary policy should remain data-driven, not political. Trump has repeatedly threatened to fire Powell, despite legal uncertainty around his authority to do so.
