Trump blasts Jerome Powell after new report shows lowest jobs growth in two years

WASHINGTON ― President Donald Trump ramped up his call for Federal Reserve Chair Jerome Powell to lower interest rates in response to new data showing U.S. employers in May added the fewest number of workers in more than two years.
Private employers added only 37,000 jobs in May, according to the ADP National Employment Report released on June 4, significantly fewer than the 110,00 jobs that economists polled by Reuters had predicted. It was the smallest gain ADP has monitored since March 2023.
"ADP NUMBER OUT!!!" Trump said in a post on Truth Social. "'Too Late' Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!"
More: Long-term unemployment hits 2-year high as hiring slows amid economic uncertainty
Leisure, hospitality and financial sectors produced the most newly added jobs in May, according to the report, while 3,000 jobs were lost in manufacturing ‒ an area that Trump has tried to rejuvenate with his sweeping tariffs on imports.
The Labor Department's April jobs report showed 1.7 million Americans have been out of work six months or longer – the most in more than two years.
Trump has long taken aim at the interests rates set by the Fed, which on May 7 left its benchmark short-term rate at a range of 4.25% to 4.5% for a third straight meeting despite pressure from Trump.
At the president's invitation, Powell met May 29 with Trump at the White House, where Trump made a face-to-face case to lower rates.
More: Trump meets with Fed Chair Powell after criticism on interest rates
The Federal Open Market Committee's next meeting to discuss monetary policy is June 17 and 18. But Powell and his colleagues are unlikely to be prodded to cut rates by Trump's latest post or the ADP report.
Powell has made clear that the effects of Trump's sweeping tariffs are uncertain and officials are waiting to see how they impact inflation and the economy before cutting rates. He also has repeatedly said that Fed decisions are based on what's best for the economy and not politics.
Many economists don't put much stock in the ADP figure as a predictor of the Labor Department's more closely watched jobs number. Oliver Allen of Pantheon Macroeconomics noted this week that since mid-2022, ADP's tally of private-sector job growth has varied by an average of 84,000 from the Labor Department's initially reported total of private additions.
Economists surveyed by Bloomberg estimate Labor will report June 6 that 125,000 jobs were added last month – including both public and private-sector gains. That's a slowdown from recent months but still a respectable number in light of the uncertainty generated by the tariffs.
More: Trump says he has 'no intention of firing' Federal Reserve Chairman Jerome Powell
Even if the ADP number proves an accurate indicator of May job growth, a disappointing jobs figure for one month could be a blip. Fed officials have said they typically need multiple poor readings to influence their interest rate decisions.
Despite his criticism, Trump in April said he has "no intention" of firing Powell, who Trump nominated in his first term to serve a 10-year term that ends in 2028.
Whether Trump would have the authority to do so is unclear. A majority of Supreme Court justices signaled in a May 22 ruling they believe Trump wouldn't be allowed to fire Powell, arguing the Federal Reserve is "a uniquely structured, quasi-private entity" that is different than other independent agencies. The line was contained in a Supreme Court opinion allowing Trump to fire two federal labor board members.
Contributing: Reuters
Reach Joey Garrison on X @joeygarrison.
(This story has been updated with more information.)
This article originally appeared on USA TODAY: Donald Trump slams Jerome Powell after dismal jobs reports

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