Trump Wants Interest Rate Cuts Immediately after Sluggish Jobs Report

Trump is up against Powell and the Federal Reserve after the latest jobs report came back soft for May.

Written by: Timothy St. John • Thursday, June 5, 2025 • 2 min read

• Last updated: Thursday, June 5, 2025

Donald Trump is ready for interest rate cuts, but is the Fed?

Quick overview

The ADP's latest job report revealed only 37,000 new private sector payrolls, significantly lower than the expected 110,000.
President Trump is advocating for immediate interest rate cuts from the Federal Reserve in response to the disappointing job numbers.
Federal Reserve Chairman Jerome Powell has previously resisted calls for rate cuts, citing the need to control inflation, which currently stands at 2.8%.
Concerns persist that unnecessary rate cuts could exacerbate inflation, especially amid ongoing trade tensions.

The United States job report from payroll firm ADP was released Wednesday, showing very little movement there, and President Trump responded by calling for immediate interest rate cuts.

US jobs report comes back less than positive.

Trump is ready for interest rate cuts from the Federal Reserve, but Chairman Jerome Powell and the Fed may not be ready to issue those cuts. Trump’s call to action on interest rates came only moments after the ADP released its jobs report for May, which showed 37,000 new private sector payrolls.

That number was way down from the estimated 110,00 that the Dow Jones analysts predicted as well as from the 60,000 new payrolls that were recorded from April. The nonfarm payrolls numbers are still to come on Friday, but the current expectation of 125,000 predicted for that report should probably be downwardly revised.

Will the Fed Cut Interest Rates?

Trump posted to Truth Social the message “ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE.” He and Powell have butted heads numerous times in the past, and Trump has often made little headway against the Chairman’s announced interest rate cuts.

Throughout the Biden administration, Powell and the Fed chose to severely limit interest rate cuts so as to decrease their impact on rising inflation. The Fed has said repeatedly in the last 18 months that it would hold off on new cuts until the inflation rate decreases. They are specifically looking for an inflation rate of around 2% to make drastic cuts. The current inflation rate is at 2.8%.

There are only two scheduled rate cuts for 2025 right now, and there is concern that issuing unnecessary cuts will cause inflation to become even tougher to get back down, especially with the ongoing trade war between the United States and a number of its trade partners.

The Fed is likely to cut interest rates for now outside of its scheduled, already announced cuts. That is true even if Trump puts pressure on the Federal Reserve and its Chairman Jerome Powell.

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ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.