In June 2025, President Donald Trump intensified his calls for the Federal Reserve to lower interest rates, citing recent economic indicators that suggest a slowdown in the U.S. economy. The President’s demands come in the wake of disappointing job growth figures and signs of contraction in the services sector.
Weak Job Growth Raises Concerns
The latest report from payroll processor ADP revealed that private-sector employment increased by only 37,000 jobs in May, significantly below the anticipated 110,000. This marks the weakest monthly performance since March 2023. The slowdown was particularly evident in small and large businesses, which saw declines of 13,000 and 3,000 jobs respectively, while mid-sized firms added 49,000 positions .
Economists attribute this deceleration to high interest rates and uncertainties surrounding trade policies, which have made businesses cautious about hiring and investment decisions .
President Trump’s Renewed Criticism of the Fed
Federal Reserve. (2019). [Photograph]. Retrieved from Wikimedia Commons.
Reacting to the ADP report, President Trump took to Truth Social to express his frustration with Federal Reserve Chair Jerome Powell, stating, “ADP number out. ‘Too Late’ Powell must now LOWER THE RATE. He is unbelievable!!!” The President also pointed to the European Central Bank’s multiple rate cuts as a benchmark, noting, “Europe has lowered NINE TIMES!” .
This criticism follows a recent meeting between Trump and Powell at the White House, where the President reportedly urged the Fed Chair to reduce interest rates, arguing that the current monetary policy is putting the U.S. at an economic disadvantage compared to other countries .
Economic Indicators Signal Slowdown
In addition to the weak job growth, the Institute for Supply Management’s services index fell to 49.9 in May, indicating a contraction in the services sector for the first time in nearly a year . These developments suggest that the U.S. economy is experiencing a slowdown, raising concerns about the potential for a recession.
Despite these signs, the Federal Reserve has maintained its benchmark interest rate at a range of 4.25% to 4.5% since December 2024, opting for a cautious approach as it monitors the impact of tariffs and other economic factors .
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Market Reactions and Future Outlook
US President Donald Trump attacks Fed chief Powell
The financial markets have responded to the economic data and the President’s comments with increased volatility. The U.S. dollar weakened against major currencies, and investors are closely watching upcoming economic reports for further indications of the economy’s trajectory .
Analysts are divided on the likelihood of the Federal Reserve implementing rate cuts in the near term. While some believe that the current economic indicators warrant a reduction in interest rates, others argue that the Fed should wait for more concrete evidence of a sustained downturn before making policy changes .
Conclusion
President Trump’s renewed pressure on the Federal Reserve to lower interest rates underscores the growing concerns about the U.S. economy’s performance. As the Fed prepares for its next policy meeting on June 17-18, all eyes will be on the central bank’s response to the latest economic data and the President’s demands. The decisions made in the coming weeks will be critical in shaping the country’s economic outlook for the remainder of the year.
