Posted on 06/04/2025 7:06:02 AM PDT by thegagline
President Donald Trump is lashing out on social media. Jerome Powell is on the receiving end of today's ire.
Powell, the Federal Reserve chair who is slowly cutting back interest rates to minimize the risk of continued inflation, is caught in the President's crosshairs after a paltry jobs report.
US private payrolls increased far less than expected in May, the ADP National Employment Report showed on Wednesday.
Private payrolls increased by only 37,000 jobs last month, a far cry from analyst projections and the worst private job hiring slump since March 2023.
Economists polled by Reuters had forecast private employment increasing 110,000 following a previously reported gain of 62,000 in April.
'ADP NUMBER OUT!!! “Too Late” Powell must now LOWER THE RATE,' Trump said in the post.
'He is unbelievable!!! Europe has lowered NINE TIMES!'
The European Central Bank has only cut interest rates seven times, with its latest slashing coming in mid-April.
The ADP report comes two days before the more in-depth Labor Department's Bureau of Labor Statistics analysis, which drops on Friday.
There is no correlation between the ADP and BLS employment reports.
But Trump's social media anger comes as investors continue to raise worries about the independence of America's central bank from political intrusion.
The President has mounted a sustained pressure campaign, relying on personal attacks on Powell, to decrease the interest rates that have remained above four percent.
Fed officials have a joint mandate: to promote price stability and maximum employment.
Price stability has been a major weakness in the US economy, with consumer inflation reaching over nine percent in 2022 as supply chains rebooted after the Covid pandemic.
The Fed cut rates in September, November, and December 2024 to support employment after inflation had cooled.
(Excerpt) Read more at dailymail.co.uk ...
The big, beautiful bill needs to be reduced before lowering interest rates.
Leave the rates exactly where they are! Let tariffs build some data before doing anything else. Most the job numbers shortfalls are due to federal agencies not hiring and shedding positions, and that’s the best thing possible. For a long time, government employment numbers were as large as private sector employment. Let the stew simmer.
There are plenty of jobs available according to the jobs report. Isnt that the true indicator on an economy? You can bring a horse to water but you can make him drink it…. Until you take away its entitlements.
Whenever it a Republican in office these numbers are revised upward when nobody is paying attention. The amount of the revision indicates the amount of corruption in the data analysts.
No. Interest rates are hurting the housing market. There is no sane reason the rates shouldn’t be lowered except the fact Powell is a left wing idealouge
Working for less than $72k if you have a spouse and at least one kid is less than all the benefits provided for not working.
Our government discourages production and encourages consumption. All social security and welfare spending supports consumption and discourages production by shrinking the workforce. Further production disincentives are taxes, regs, government agencies. All sorts of schemes that misallocate investment capital such as green and subsidies for chips
It’s little wonder we now have stagflation. Tariffs will help because there will be decreased demand due to higher prices. DOGE is no were close to enabling the productive capacity of our economy.
Most the job numbers shortfalls are due to federal agencies not hiring and shedding positions, and that’s the best thing possible. For a long time, government employment numbers were as large as private sector employment. Let the stew simmer.
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The ADP report today is purely private payrolls. No count of any government hiring or reductions is included.
Rats have long weaponized the economy. They make no bones about killing economic success in order to regain power.
Tariff whiplash is causing some of this.
-PJ
Powell doesn’t set any rates except short term. Markets will determine longer term rates. Rates can be manipulated for a time by government debt and the fed balance sheet.
But fiscal policy matters and at some point even the US government reaches its limits for manipulating interest rates.
Debt holders are starting to demand a default premium along with an inflation premium. Powell cannot do a thing about either. A functioning growing economy needs to borrow money and if the ecomomy is successful people will borrow more and pay more (interest) to do so. Powell can also repress private borrowing to suppress competition for borrowing money but only at the expense of growth.
Trump is a spender and he presents a default risk. Does anyone believe Trumps cares about the “sanctity of US government debt”?
Good 2 know. Thanks.
ADP is a public company, not the official numbers (however accurate those may be).
Most job listings are fake and if you can get hired it takes months.
Does anyone believe Trumps cares about the “sanctity of US government debt”?
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Businesses commonly and legally declare bankruptcy to shed their unpayable debt….at some point, the US government will have to default in one form or another…..that is where sovereign Digital Currency ( cashless) will be pitched to “ save the system “, and citizens will jump all over it after being told their SS, Pensions, 401K’s will be zero if they don’t accept it.
….just like the dangerous mRNA jabs, “ you will die if you don’t take the shot”….275 million Americans panicked and voluntarily injected themselves with untested poison.
“No. Interest rates are hurting the housing market. There is no sane reason the rates shouldn’t be lowered except the fact Powell is a left wing idealouge”
Using someone else’s money must have a reasonable cost, else there is no reason to risk lending money. When we bought out house in the “80s, we paid 13.5% interest. The problem isn’t that interest rates are too high, it is that the price of the housing is too high. The problem is demand, and a root cause is illegal immigration.
Let’s rid ourselves or 20+ million illegals. Housing demand will be reduced, and then housing drop to its natural, more affordable cost, without again resorting to the dangers of “free” money.
Not only that, but most job listings are written by HR types who have no clue what they are trying to hire for.
I frequently apply for jobs that don’t really seem to be a good fit at all only to find I am exactly what they are looking for. Also, if a job listing is real they are far less picky and a lot more likely to hire you even if you aren’t a great fit.
As long as you are willing to learn not knowing a specific technology isn’t much of a problem.
‘He is unbelievable!!! Europe has lowered NINE TIMES!’
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History shows lowering rates has always been a sign of an economy in big trouble….it does nothing more than kick the can down the road.
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