Trump Blasts Powell Over Late Rate Cuts Amid Shocking Jobs Report

Michael

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Post on Sep 10, 2025

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Trump Blasts Powell Over Late Rate Cuts Amid Shocking Jobs Report

Former President Donald Trump unleashed a scathing attack on Federal Reserve Chairman Jerome Powell Friday, blaming him for the surprisingly robust jobs report and accusing him of being too slow to cut interest rates. The unexpectedly strong employment numbers, showing 336,000 jobs added in September, sent shockwaves through financial markets and fueled further debate about the Fed's monetary policy strategy. Trump's criticism adds another layer of political pressure on Powell, who is already facing intense scrutiny over the fight against inflation.

The strong jobs report directly contradicts predictions and suggests the Federal Reserve's aggressive interest rate hikes might not be cooling the economy as quickly as hoped. This unexpected strength casts doubt on the possibility of a near-term pivot towards rate cuts, a scenario some economists had anticipated. Trump, however, believes the Fed should have acted sooner and more aggressively in lowering rates.

<h3>Trump's Accusations and the Economic Context</h3>

Trump, in a series of posts on his Truth Social platform, accused Powell of being "behind the curve" and claimed the strong job growth was a direct result of the Fed's delayed response to inflation. He argued that earlier, more significant rate cuts would have prevented the current economic situation. "The Fed is incompetent," Trump wrote, echoing his consistent criticism of Powell and the Federal Reserve's actions throughout his presidency. His statements were widely circulated on social media and covered by major news outlets, amplifying the political implications of the economic data.

The timing of Trump's criticism is particularly noteworthy. The robust jobs report complicates the already complex task facing the Federal Reserve. The central bank is attempting to engineer a "soft landing," slowing economic growth enough to curb inflation without triggering a recession. A strong jobs market, while positive in many ways, could pressure the Fed to continue raising interest rates, potentially increasing the risk of a recession.

<h3>Political Fallout and Market Reactions</h3>

Trump's outspoken criticism of Powell is not surprising given their history of clashes. During Trump's presidency, he repeatedly pressured Powell to lower interest rates, even going so far as to call for his firing. This latest attack underscores the ongoing political dimension of monetary policy decisions and the intense pressure policymakers face navigating economic challenges.

The markets reacted with a mix of caution and volatility following the jobs report release. While the strong job creation is generally positive, it also raises concerns about persistent inflationary pressures. This uncertainty underlines the challenges facing investors and the broader economy. Some analysts believe that the unexpected strength of the jobs market could force the Fed to maintain its hawkish stance, potentially leading to further market fluctuations.

<h3>What's Next for the Fed and the Economy?</h3>

The coming months will be crucial in determining the path of the US economy. The Federal Reserve will continue to closely monitor economic indicators, including inflation data and employment figures, to inform its policy decisions. The political pressure on Powell, fueled by Trump's criticism and other voices, will likely remain significant.

While the strong jobs report provides some positive news on the employment front, the lingering question remains: will the Fed's strategy succeed in achieving a soft landing, or will the economy face a more severe downturn? Only time will tell. Further analysis of economic data and the Fed's upcoming policy announcements will be vital to understanding the evolving economic landscape.

Keywords: Donald Trump, Jerome Powell, Federal Reserve, interest rates, jobs report, inflation, monetary policy, economy, recession, soft landing, economic growth, market reaction, political pressure, Truth Social

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