Trump Slams ‘Too Late’ Powell After ADP Jobs Growth Slows Sharply

U.S. President Donald Trump renewed his attacks on Federal Reserve Chair Jerome Powell on Wednesday, urging immediate rate cuts after private payroll data showed the weakest job creation in more than two years.

“ADP NUMBER OUT!! ‘Too Late’ Powell must now LOWER THE RATE,” Trump wrote on Truth Social, referencing the May employment figures released by ADP. “He is unbelievable!!! Europe has lowered NINE TIMES!”

The outburst comes less than a week after Trump and Powell met at the White House. According to a Fed statement issued after that meeting, the two discussed broad economic developments, including growth, inflation, and employment. 

Powell “did not discuss his expectations for monetary policy,” the Fed said, emphasizing that rate decisions would be based on incoming data and remain free from political influence.

ADP’s report showed private employers added just 37,000 jobs in May, down from 60,000 in April and well below the 110,000 expected by economists surveyed by Dow Jones, as cited by CNBC.

It marked the lowest monthly total since March 2023, with hiring slowing across both goods-producing and service sectors.

Leisure and hospitality added 38,000 jobs, and financial services added 20,000, but those gains were offset by losses in education and health services, professional and business services, and trade-related industries. 

Small firms saw a net loss of 13,000 positions, while large firms shed 3,000 jobs. Midsize companies added 49,000.

The data arrives two days before the Labor Department’s official non-farm payrolls report, which is projected to show a gain of 125,000 jobs and an unchanged unemployment rate of 4.2%.

Despite the hiring slowdown, annual pay growth remained elevated. Wages rose 4.5% for job stayers and 7% for job changers, according to ADP’s chief economist Nela Richardson.

Markets were muted in pre-market trade on Wednesday. The SPDR S&P 500 ETF Trust (SPY) edged 0.02% lower, the Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, ticked 0.04% higher, and the SPDR Dow Jones Industrial Average ETF (DIA) slipped 0.07%.

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Read also: Apple Stock Downgraded By Needham, Valuation Called ‘Expensive’ Compared to Google, Amazon

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