Trump administration officials criticize Jerome Powell over sluggish economy and disappointing August employment figures

In a recent development, President Donald Trump has criticised the Federal Reserve and its Chair, Jerome Powell, for not lowering interest rates earlier. This criticism comes as the U.S. economy added jobs at a slower pace in August, with employers adding just 22,000 jobs, lower than the estimated 75,000 jobs.

The unemployment rate also rose to 4.3% in August, up from 4.2% in July. This underperforming jobs report has been a topic of discussion among economic experts and political figures alike.

U.S. Labor Secretary Lori Chavez-DeRemer, who discussed the weak August jobs report on FOX Business' "Varney & Co.", believes that the Fed's failure to lower interest rates is a key factor in the weak jobs report. She highlighted that 84% of the jobs created are from the private sector and expressed a desire to continue seeing business investment.

Employco USA President Rob Wilson agrees with Chavez-DeRemer, stating that the Federal Reserve's tight monetary policy may push the economy into excessive contraction. Wilson believes that lowering interest rates could stimulate hiring and help the economy recover.

Charles Payne, host of 'Making Money', suggested that the Fed should strike a better balance between tempering inflation and preserving hiring momentum. He argued that the Fed's current approach could lead to a slowdown in job growth.

However, the Federal Reserve declined to comment on the August jobs report.

Scott Bessent, U.S. Treasury Secretary, has expressed concerns about the Fed's independence and its ability to manage the economy. In an op-ed published in the Wall Street Journal, Bessent criticised the Federal Reserve's policy after the Great Recession, arguing that the expansion of its policy toolkit has weakened its ability to manage the economy. Bessent believes that overuse of nonstandard policies, mission creep, and institutional bloat threaten the Federal Reserve's independence.

President Trump has also asserted that high interest rates are a cause of the weak jobs numbers.

Despite these concerns, Larry Kudlow, host of 'Kudlow', expressed optimism about the state of the American economy.

As the debate over the Federal Reserve's role in the economy continues, it remains to be seen how the central bank will respond to the criticism and whether it will take action to stimulate job growth.

FOX Business' Eric Revell contributed to this report.