Trump Urges ‘Too Late Powell’ to Cut Interest Rates After Weak ADP Report

The federal funds rate currently sits between 4.25% and 4.50%, although President Trump believes that it should be lower. This morning, he said on social media:

“ADP NUMBER OUT!!! “Too Late” Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!”

Trump was referring to the ADP National Employment report, which showed that private sector job payrolls increased by just 37,000 in May, well below the estimate for 110,000 jobs and the revised figure of 60,000 in April. May marked the lowest private sector additions since March 2023.

ADP Report Shows Faltering Private Sector

“After a strong start to the year, hiring is losing momentum,” said ADP Chief Economist Dr. Nela Richardson. “Pay growth, however, was little changed in May, holding at robust levels for both job-stayers and job-changers.” Pay growth increased 4.5% year-over-year during the month.

This isn’t the first that Trump has called Fed Chair Jerome Powell “Too Late Powell,” signaling that Powell has delayed cutting interest rates. The Fed operates on a dual-mandate, which is to maximize employment and stabilize prices by keeping inflation at bay. With the ADP report showing weak private payroll growth, Trump believes that the Fed should cut rates in order to stimulate job creation. With lower rates, companies can borrow with lower interest expense costs, driving corporate growth and more hiring.

Keep track of key economic statistics with TipRank’s Economic Indicators Dashboard.