Trump Demands Aggressive Fed Rate Cut Despite Strong Jobs Data

President Donald TRUMP has renewed his pressure campaign on Federal Reserve Chair Jerome Powell, calling for an unprecedented full percentage point rate cut. The demand comes just hours after a stronger-than-expected May jobs report showed 139,000 new nonfarm payrolls—surpassing the 125,000 estimate.

Trump framed the proposed cut as "rocket fuel" for what he called an already "great" economy, drawing comparisons to Europe where the ECB has implemented eight cuts since June 2023. The president accused Powell of moving "too late," warning that delayed action WOULD cost the U.S. economically.

The Fed maintains its cautious stance, with policymakers noting cooling but persistent inflation risks. Trump's own trade policies—particularly ongoing tariffs—complicate the outlook by potentially reigniting price pressures. Central bank officials prefer measured quarter-point adjustments, reserving drastic moves for crisis scenarios.