Trump: Powell must lower the rate, big, right now.

Trump: Powell must lower the rate, big, right now.

Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, calling for immediate and substantial interest rate cuts following a significant downward revision in the U.S. job growth data. The Bureau of Labor Statistics (BLS) reported that the U.S. added about 911,000 fewer jobs than initially estimated from March 2024 to March 2025, a revision that has fueled Trump's long-standing frustration with Powell's monetary policy [1].

Trump, who has been vocal about his dissatisfaction with Powell's handling of interest rates, has taken to Truth Social to express his displeasure, stating that Powell has "done a terrible job since he adapted [the target of 2% inflation]. It’s too low, it’s too rigid, they followed Data that’s years delayed." He has also called for the Fed to use "modern sources of information" [1].

The BLS's revision has reshaped the narrative of the U.S. labor market's health over the past year. The August jobs report, released last week, showed just 22,000 new positions, nearly all in healthcare and support services; other sectors have stagnated, amplifying concerns that job growth outside healthcare may soon vanish altogether as Medicaid cuts take effect in October. The downward revision, combined with weak hiring trends, contributes to a growing sense of "stagflation": a toxic mix of slow employment gains and persistently high inflation [1].

Trump's campaign is using the revised numbers to challenge both Powell's leadership and the reliability of government statistics. Commerce Secretary Howard Lutnick, a Trump ally, has promised a coming "jobs boom" once the new administration's investment agenda is implemented. For now, the revision will likely embolden calls for more aggressive rate cuts—and for holding Powell accountable [1].

The BLS's benchmark revision significantly reshapes the narrative of the U.S. labor market’s health over the last year. The August jobs report, released last week, showed just 22,000 new positions, nearly all in healthcare and support services; other sectors have stagnated, amplifying concerns that job growth outside healthcare may soon vanish altogether as Medicaid cuts take effect in October. The downward revision, combined with weak hiring trends, contributes to a growing sense of “stagflation”: a toxic mix of slow employment gains and persistently high inflation [1].

The White House has also responded to the data revision, with White House Press Secretary Karoline Leavitt stating that the BLS's largest downward revision in history proves that "President Trump was right: Biden's economy is in shambles, and the BLS has also failed." U.S. Treasury Secretary Bessent and Vice President Vance have also criticized the BLS and Powell, calling for multiple rate cuts and new leadership at the Federal Reserve [2].

The market response to the BLS revision has been intense, with Wall Street fixated on the implications for Fed policy. Investors hope the sharp downward correction will prompt a substantial rate cut at the upcoming meeting, with some betting on a half-point "jumbo" cut—though consensus forecasts a milder 25 basis-point reduction. Powell is now under extraordinary public pressure to respond to the data, which suggests the slowdown first revealed by the July jobs report actually began months earlier [1].

As Trump weaponizes the labor data to escalate attacks on Powell, attention shifts to the Fed's imminent rate decision and the White House's response to growing anxiety among workers and investors. With economic uncertainty mounting, the revised jobs figures add crucial "juice" to a controversy at the intersection of policy, politics, and public confidence [1].

Sources:
[1] https://finance.yahoo.com/news/trump-fury-jerome-powell-being-160313822.html
[2] https://news.futunn.com/en/post/61886553/the-annual-non-farm-payroll-data-has-been-significantly-revised