Federal Reserve urged again by Trump following robust April employment data

Federal Reserve urged again by Trump following robust April employment data

Fired-Up Trump Pushes for lower Interest Rates on Social Media

In a typical Trump display, President Donald Trump took to his Truth Social platform on Friday to fan the flames, urging for a reduction in interest rates following a strong jobs report for April.

"Here we go again, just getting started!!!" Trump exclaimed in a jubilant post mere minutes after the nonfarm payrolls data was released. The Bureau of Labor Statistics reported a seasonally adjusted increase of 177,000 jobs in April, surpassing the Dow Jones estimate of 133,000 and although it fell slightly below the revised job growth of 185,000 in March.

This latest push from Trump signals his continued attempts to sway the central bank's decision-making process, testing its traditionally independent stance from the executive branch. Yet, his aggressive stance seems to have softened marginally as he scales back his criticism of Fed Chair Jerome Powell.

Trump's disapproval of Powell's performance and his constant pressure to decrease rates were once feared to jeopardize Powell's job. Economic advisor Kevin Hassett revealed last month that the White House was considering rules that would allow Trump to dismiss Powell. However, Powell has consistently maintained that the president does not have the authority to terminate his term that ends in May 2026.

Fears of Trump attempting to replace Powell with someone more amiable to political pressure on rates have been a cause of concern for markets worldwide, leadings a sell-off in April that saw significant drops in major indexes and the US dollar.

Since then, Trump has distanced himself from the idea of terminating Powell, stating he has "no intention" of firing him. At a rally in Michigan on Tuesday, he was careful to not openly criticize Powell by name, instead voicing his dissatisfaction with "a Fed person who is not really doing a good job."

Trump's Friday morning message stood in stark contrast to his reaction to Wednesday's report that the US economy contracted for the first time since 2022, with him blaming former President Joe Biden for the unfavorable first-quarter GDP reading.

Insights:

The historical episodes of presidents attempting to exert control over the Federal Reserve, such as Nixon's pressure on Arthur Burns, have demonstrated an increase in inflation and economic instability. The perception of political interference may also lead to decreased market confidence and increased market volatility. The independence of the Fed plays a vital role in maintaining long-term economic health and stability.

Taxes

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US News

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Since the beginning of this year, the Fed remains a top focus for investors and market observers. To learn more about the Fed and its role in the economy, check out our resource on the Federal Reserve System.

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CNBC's Jeff Cox contributed to this report.

1. Trump's calls for lower interest rates could have significant implications for the economy.
2. The Federal Reserve's traditionally independent stance from the executive branch is under scrutiny.
3. Jerome Powell, the Fed Chair, has faced pressure from Trump to decrease interest rates.
4. Trump's continuous attempts to sway the Fed's decision-making process have raised concerns.
5. The sell-off in April was partly due to fears of Trump attempting to replace Powell.
6. Trump's push for lower interest rates in 2026 could lead to increased inflation.
7. Economic instability could arise from historical episodes of presidents attempting to control the Fed.
8. The independence of the Fed is crucial for maintaining long-term economic health and stability.9.politics might interfere with the Fed's monetary policy, leading to economic unpredictability.
9. The dip in the US economy in Q1 2026 could be due to former President Joe Biden's policies.
10. President Trump's demands for lower interest rates might decrease market confidence.
11. High inflation, driven by political interference in the Fed, may result from Trump's pressure.
12. Taxes and tariffs could impact the performance of asset markets, like the Kentucky Derby.
13. The US news regarding Kohl's CEO's dismissal due to allegations of relationship and biased decision-making practices is making headlines.
14. Investors and market observers are closely watching the Fed's role in the economy due to Trump's influence.
15. To ensure long-term economic success, it is essential to understand the Federal Reserve System.
16. Chevron has delayed share buybacks due to Trump tariffs and OPEC+ production affecting oil prices.
17. Apple's Spotify update aligns with Apple Store guidelines, enabling in-app purchases.
18. American Airlines has introduced new suites with sliding doors, causing some delays in their launch.
19. In the realm of sports, the US economy contracted for the first time since 2022, leading to uncomfortable discussions about President Biden's performance.
20. The Champions League, NFL, soccer, WNBA, baseball, hockey, golf, and tennis are among the popular sports facing changes.
21. Sports-betting is becoming more prevalent in European leagues, basketball, and college sports like NCAA basketball.
22. Vegas-history, casino-games, and gambling trends have shaped a unique casino-culture in Las Vegas.
23. Weather and weather-forecasting have considerable impacts on auto-racing and horse-racing.
24. Mixed-martial-arts events regularly make general news, and crime-and-justice issues sometimes arise.
25. Responsible gambling initiatives are increasingly important as the sports-betting landscape expands.
26. War-and-conflicts have consequences for various sectors, including sports, markets, and the economy.
27. Lotteries are a significant part of the casino industry, generating substantial revenue.
28. Casino-personalities, like famous poker players and casino magnates, contribute to the casino culture and entertainment industry.
29. Policy-and-legislation play essential roles in shaping the sports industry, including sports-betting policies and athletic funding.

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