Trump Renews Pressure on Fed to Cut Rates Amid Slowing Labor Market

President Donald TRUMP has intensified his criticism of Federal Reserve Chair Jerome Powell, labeling him "Too Late" for delaying interest rate cuts. The remarks follow a weaker-than-expected August jobs report, which showed only 22,000 new nonfarm payrolls—far below the anticipated 75,000.

The Fed is now widely expected to cut rates by 25 basis points at its September FOMC meeting, with a 14.2% probability of a more aggressive 50 bps reduction. The central bank faces a delicate balancing act: stimulating job growth while containing inflationary pressures exacerbated by Trump's trade tariffs.

July's Core PCE inflation hit its highest annual pace since February, while PPI recorded the steepest monthly rise in over two years. Market participants will scrutinize whether monetary policy can address both slowing employment and persistent price pressures.