Trump Asks Fed To Go Full Throttle On Rate Cuts After Positive Jobs Report: ‘There Is Virtually No Inflation Anymore’

After non-farm payrolls data for May came in higher than expected, President Donald Trump once again unleashed his criticism of the Federal Reserve, this time without explicitly calling out Chair Jerome Powell's name.

Trump also demanded a full percentage point rate cut and compared the rate action in Europe to highlight the urgency.

‘“Too Late” at the Fed is a disaster! Europe has had 10 rate cuts; we have had none. Despite him, our Country is doing great. Go for a full point, Rocket Fuel!,’ the U.S. President wrote on his Truth Social account on Friday.

The U.S. Bureau of Labor Statistics reported that total non-farm payroll employment increased by 139,000 in May, which was higher than the estimated 125,000 increase, according to a CNBC report.

The data showed that hiring reduced marginally compared to April, when the U.S. economy added 147,000 jobs.

Trump further highlighted that a rate reduction by the Fed would greatly help in managing the debt that is coming due. The U.S. President also opined that there is no inflation anymore and that if price pressures were to rise, a rate hike could be the solution.

‘If “Too Late” at the Fed would CUT, we would greatly reduce interest rates, long and short, on debt that is coming due. Biden went mostly short term. There is virtually no inflation (anymore), but if it should come back, RAISE “RATE” TO COUNTER. Very Simple!!!’ Trump wrote. ‘He is costing our Country a fortune. Borrowing costs should be MUCH LOWER!!!’

Fed officials, however, still hold the view that a wait-and-watch approach, as indicated by Chair Powell, is the right way to approach the current situation.

Federal Reserve Governor Adriana D. Kugler said on Thursday that she sees greater upside risks to inflation at this juncture and potential downside risks to employment and output growth down the road.

“Disinflation has slowed, and we are already seeing the effects of higher tariffs, which I expect will continue to raise inflation over 2025,” she said.

U.S. benchmark indices rallied on Friday following the release of the jobs report, with the S&P 500 touching the 6,000 mark after three months. The SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500, traded 1.12% higher in Friday’s pre-market, while the Invesco QQQ Trust, Series 1 (QQQ), which tracks the Nasdaq Composite, was up 1.11%.

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