Trump’s latest attack on Jerome Powell over interest rates has markets on edge, calling the Fed Chair a “major loser” after dismal jobs data showed only 37,000 new positions in May. Powell isn’t budging though, sticking to his data-driven approach despite the political heat. Bitcoin remains frustratingly trapped below $100K as investors grapple with economic uncertainty and trade policy chaos. The classic Washington power struggle continues while crypto holders wonder if monetary policy shifts could finally break the ceiling.
Trump fired off another round of criticism at Federal Reserve Chair Jerome Powell, demanding lower interest rates after a dismal jobs report showed private sector hiring nearly grinding to a halt. The ADP data revealed a measly 37,000 jobs added in May. Not exactly the kind of numbers that scream economic strength.
Trump unleashed fresh attacks on Fed Chair Powell, demanding rate cuts as hiring stalled with a pathetic 37,000 jobs added in May.
The president took to social media, as he does, calling Powell a “major loser” and hammering away at the Fed’s stubborn stance on rates. Trump pointed to Europe, where central banks have slashed rates multiple times to prop up their struggling economies. Meanwhile, Powell sits tight, unmoved by the political theater swirling around him.
Their recent White House meeting didn’t produce much drama. Powell stuck to his guns, emphasizing that rate decisions come from economic analysis, not presidential tantrums. No commitments were made. The Fed chair basically told Trump that data drives decisions, not tweets.
The Supreme Court has already settled this power struggle. Powell’s position is legally bulletproof against presidential removal. Trump can criticize all he wants, but he can’t fire the guy. Even Trump has admitted he has no intention of removing Powell before his term ends. The FearGreed Index reflects growing anxiety in both traditional and crypto markets.
Markets are feeling the tension. U.S. government debt yields and the dollar have been bouncing around like pinballs as investors try to decode the Fed’s next move. The uncertainty isn’t helping anyone. Powell’s approach of careful, objective analysis continues to frustrate the president who prefers more aggressive rate cuts.
Trump’s trade policies aren’t making things easier either. Businesses are hesitant to hire when they can’t predict what tariff bomb might drop next. The Fed considers the economy resilient despite these headwinds, but hiring momentum is clearly losing steam. This marks the second consecutive month of disappointing employment figures.
Powell’s message remains crystal clear: the Fed makes decisions based on incoming economic data, not political pressure. The central bank views current interest rate policy as appropriate given economic conditions. Trump can keep applying pressure, but Powell seems determined to maintain the Fed’s independence.
The ongoing feud highlights the classic tension between political expediency and monetary policy. Trump wants lower rates to juice the economy. Powell wants to follow the data wherever it leads.
