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Yahoo
12-06-2025
- Business
- Yahoo
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
Yahoo
06-06-2025
- Business
- Yahoo
Trump calls for a jumbo Fed cut, but resilient jobs report makes that even less likely
President Trump on Friday suggested the Federal Reserve should lower rates by a full percentage point, but any slim chance of a June cut evaporated with a jobs report that showed continued resilience in the labor market. There were questions about the possibility of a June cut this week following a weak ADP National Employment Report released Wednesday, Wellington Management fixed income portfolio manager Brij Khurana said, but the new Labor Department report released Friday "is good enough that it takes away June." "The labor market is not cracking yet even though it is decelerating," he added. What the Labor Department said on Friday is that the US economy added 139,000 nonfarm payrolls in May, more than the 126,000 expected by economists. The unemployment rate held steady at 4.2%. Following the release Trump posted on social media that "AMERICA IS HOT" and said, in a reference to Fed Chair Jerome Powell, that "'Too Late' at the Fed is a disaster!" Trump has tried to brand Powell with the "Too Late" nickname repeatedly in 2025, arguing that the Fed chair didn't react quickly enough when inflation surged during the Covid-19 pandemic. The president on Friday also urged Powell and the Fed to make a jumbo rate cut of a "full point," referring to moves made by other central banks to ease monetary policy. "Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great. Go for a full point, Rocket Fuel!" Later in the day Trump noted in a separate post that Powell is "is costing our Country a fortune. Borrowing costs should be MUCH LOWER!!!" Read more: How much control does the president have over the Fed and interest rates? But Friday's Labor Department report makes it even less likely the Fed will consider rate cuts in the near term, Fed watchers said, since it doesn't show that the jobs market is grinding to a halt. Investors are currently betting that there is virtually no chance of a cutout of the June 17-18 meeting and that the central bank won't ease its policy again until September at the earliest. The Fed has not altered its benchmark rates at all in 2025 after reducing them by a full percentage point at the end of 2024, citing uncertainties about Trump's policies. In fact, in recent days, several fed policymakers have made it clear they are more worried about inflation than employment and thus are content to be patient about any changes to the Fed's current stance. "I see greater upside risks to inflation at this juncture and potential downside risks to employment and output growth down the road, and this leads me to continue to support maintaining the FOMC's policy rate at its current setting if upside risks to inflation remain," Federal Reserve governor Adriana Kugler said Thursday in a speech at the Economic Club of New York. Read more: How jobs, inflation, and the Fed are all related Kansas City Fed president Jeff Schmid also said Thursday he is very focused on the risk for higher inflation from tariffs and that the Fed should "not let down our guard." "While the tariffs are likely to push up prices, the extent of the increase is not certain, and likely will not be fully apparent for some time," Schmid added. Schmid noted that "the extent of the drag on growth and employment is also unclear," but "I intend to remain focused on the importance of maintaining credibility on inflation." But there is certainly a divide emerging among some Fed policymakers about whether to hold rates steady or get more comfortable about cuts later this year. Some policymakers are arguing for "looking through" the impact of the duties as temporary, a stance that would leave the door open for cuts. Federal Reserve governor Chris Waller is now firmly in the first camp. Last Sunday, he made an argument for why any impact on inflation from tariffs likely won't last. "Given my belief that any tariff-induced inflation will not be persistent and that inflation expectations are anchored, I support looking through any tariff effects on near-term inflation when setting the policy rate," Waller said in a speech in Seoul, South Korea. If 'Too Late' at the Fed would CUT, we would greatly reduce interest rates, long and short, on debt that is coming due. Biden went mostly short term. Trump in another post on Friday offered some advice to Powell if inflation should "come back." "RAISE 'RATE' TO COUNTER. Very Simple!!!" Trump posted. Click here for in-depth analysis of the latest stock market news and events moving stock prices
Yahoo
06-06-2025
- Business
- Yahoo
Trump calls again for a Fed cut but resilient jobs report makes that even less likely
President Trump once again suggested the Federal Reserve should lower rates, but any slim chance of a June cut evaporated Friday with a jobs report that showed continued resilience in the labor market. There were questions about the possibility of a June cut this week following a weak ADP National Employment Report released Wednesday, said Wellington Management fixed income portfolio manager Brij Khurana, but the new Labor Department report released Friday "is good enough that it takes away June." "The labor market is not cracking yet even though it is decelerating," he added. What the Labor Department said Friday is that the US economy added 139,000 nonfarm payrolls in May, more than the 126,000 expected by economists. The unemployment rate held steady at 4.2%. Following the release, Trump posted on social media that 'AMERICA IS HOT' and said, in a reference to Fed Chair Jerome Powell, that ''Too Late' at the Fed is a disaster!' He also suggested more cuts were now necessary, referring to moves made by other central banks to ease monetary policy. 'Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great. Go for a full point, Rocket Fuel!' That follows a similar post from the president Wednesday where he called Powell 'unbelievable!!!' and said "'Too Late' Powell must now LOWER THE RATE." But Friday's Labor Department report makes it even less likely the Fed will consider rate cuts in the near term, Fed watchers said, since it doesn't show that the jobs market is grinding to a halt. Investors currently are betting there is virtually no chance of a cut out of the June 17-18 meeting, and that the central bank won't ease its policy again until September at the earliest. The Fed has not altered its benchmark rates at all in 2025 after reducing them by a full percentage point at the end of 2024, citing uncertainties about Trump's policies. In fact, in recent days several fed policymakers have made it clear they are more worried about inflation than employment — and thus are content to be patient about any changes to the Fed's current stance. "I see greater upside risks to inflation at this juncture and potential downside risks to employment and output growth down the road, and this leads me to continue to support maintaining the FOMC's policy rate at its current setting if upside risks to inflation remain," Federal Reserve governor Adriana Kugler Kugler said Thursday in a speech at the Economic Club of New York. Kansas City Fed president Jeff Schmid also said Thursday he is very focused on the risk for higher inflation from tariffs and that the Fed should 'not let down our guard.' 'While the tariffs are likely to push up prices, the extent of the increase is not certain, and likely will not be fully apparent for some time,' Schmid added. Schmid noted that "the extent of the drag on growth and employment is also unclear but "I intend to remain focused on the importance of maintaining credibility on inflation." But there is certainly a divide emerging among some Fed policymakers about whether to hold rates steady or get more comfortable about cuts later this year. Some policymakers are arguing for "looking through" the impact of the duties as temporary, a stance that would leave the door open for cuts. Federal Reserve governor Chris Waller is now firmly in the first camp. Last Sunday, he made an argument for why any impact on inflation from tariffs likely won't last. "Given my belief that any tariff-induced inflation will not be persistent and that inflation expectations are anchored, I support looking through any tariff effects on near-term inflation when setting the policy rate," Waller said in a speech in Seoul, South Korea. Click here for in-depth analysis of the latest stock market news and events moving stock prices
Shafaq News
05-06-2025
- Business
- Shafaq News
Gold firms as traders await US data; silver hits 13-year high
Shafaq News/ Gold held its ground on Thursday as investors looked forward to U.S. non-farm payrolls data due later this week to assess the U.S. interest rate path, while silver prices rose above the key $35 per ounce level for the first time since October 2012. Spot gold was up 0.3% at $3,383.79 an ounce, as of 0933 GMT. U.S. gold futures rose 0.3% to $3,407.80. "I would say that the path of least resistance remains to the upside, despite today's sort of flat mode for gold trading. But I think this is more due to traders being in wait-and-see mode ahead of non-farm payrolls," said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades. Wednesday's ADP National Employment Report revealed U.S. private payrolls increased far less than expected in May. U.S. President Donald Trump on Wednesday called for Fed Chair Jerome Powell to lower interest rates. "I think that a weakening in the US labor market will increase bets on a dovish Fed, so on the Fed cutting interest rates, (which) would be positive for gold," Evangelista added. Gold, a safe-haven asset during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment. Meanwhile, spot silver jumped 1.7% to $35.55 per ounce, its highest level since February 2012. Silver's "recent underperformance against gold because of economic concerns, given that 70% of silver usage is industrial, it looks that there could be some ratio trading going on now that it has dipped below the 100 level," StoneX analyst Rhona O'Connell said. The gold-silver ratio, denoting how many ounces of silver one ounce of gold can buy, is used by the market to gauge future trends as it indicates silver's current performance against its historical correlation with gold. Platinum rose 3.5% to $1,122.80, its highest level since April 2023, and palladium was up 2.4% at $1,025. "Tangible assets with limited supply such as gold, silver, platinum and copper should be part of a broad portfolio in order to mitigate any economic fallout from geopolitical events, government mismanagement of debt and rising inflation threat" said Ole Hansen, head of commodity strategy at Saxo Bank. Trump on Wednesday said the nation's debt ceiling should be eliminated, saying he agreed with Democratic Senator Elizabeth Warren's view on the subject.
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Business Standard
05-06-2025
- Business
- Business Standard
Gold holds as traders await US payrolls data, silver hits 13-year high
Gold held its ground on Thursday as investors looked forward to US non-farm payrolls data due later this week to assess the US interest rate path, while silver prices rose above the key $35 per ounce level for the first time since October 2012. Spot gold was up 0.3 per cent at $3,383.79 an ounce, as of 0933 GMT. US gold futures rose 0.3 per cent to $3,407.80. "I would say that the path of least resistance remains to the upside, despite today's sort of flat mode for gold trading. But I think this is more due to traders being in wait-and-see mode ahead of non-farm payrolls," said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades. Wednesday's ADP National Employment Report revealed US private payrolls increased far less than expected in May. US President Donald Trump on Wednesday called for Fed Chair Jerome Powell to lower interest rates. "I think that a weakening in the US labor market will increase bets on a dovish Fed, so on the Fed cutting interest rates, (which) would be positive for gold," Evangelista added. Gold, a safe-haven asset during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment. Meanwhile, spot silver jumped 1.7 per cent to $35.55 per ounce, its highest level since February 2012. Silver's "recent underperformance against gold because of economic concerns, given that 70 per cent of silver usage is industrial, it looks that there could be some ratio trading going on now that it has dipped below the 100 level," StoneX analyst Rhona O'Connell said. The gold-silver ratio, denoting how many ounces of silver one ounce of gold can buy, is used by the market to gauge future trends as it indicates silver's current performance against its historical correlation with gold. Platinum rose 3.5 per cent to $1,122.80, its highest level since April 2023, and palladium was up 2.4 per cent at $1,025. "Tangible assets with limited supply such as gold, silver, platinum and copper should be part of a broad portfolio in order to mitigate any economic fallout from geopolitical events, government mismanagement of debt and rising inflation threat" said Ole Hansen, head of commodity strategy at Saxo Bank. Trump on Wednesday said the nation's debt ceiling should be eliminated, saying he agreed with Democratic Senator Elizabeth Warren's view on the subject.
