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Trump Demands Rate Cuts After Strong Jobs Report
President Donald Trump has once again called for the Federal Reserve to reduce interest rates in response to a strong US jobs report. According to the Bureau of Labor Statistics, the US labor market witnessed an increase of 177,000 nonfarm payroll employment in April 2025. The unemployment rate remained steady, while wages experienced modest growth.
The President cited the robust job creation and decreasing consumer prices as justification for his request. Trump has made similar demands in the past when economic data appears positive, suggesting that interest rate cuts would stimulate the US economy further.
However, Federal Reserve Chairman Jerome Powell remains committed to maintaining the current monetary policy stance due to ongoing inflation concerns and uncertainty around global trade risks. The Fed Chair emphasized that the central bank must focus on long-term risks rather than short-term market fluctuations.
Despite Trump’s pressure, many economists agree with the Fed’s stance. Justin Wolfers, an economist at the University of Michigan, stated that he is “almost certain” that the Federal Reserve will not cut rates in the near future. He believes the real economy remains strong enough to justify no rate action, and the Fed prefers to wait for clearer signs before making any changes.
The market reaction has largely been in line with these expectations, as traders on the CME Group’s platform now expect a less than 2% chance of a rate cut at the next Federal Open Market Committee (FOMC) meeting. This aligns with Wolfers’ assessment and suggests that the Fed is unlikely to alter its policy stance.
The crypto market has also reacted to Trump’s comments, with investors shifting their focus away from expecting an imminent rate cut. This shift in sentiment may lead to increased volatility for digital assets as investors reassess their expectations.
In conclusion, it appears that the Federal Reserve will not be swayed by President Trump’s demands for rate cuts at this time. The central bank remains committed to maintaining its current monetary policy stance until there are clearer signs of economic instability or change in inflation trends.
Source: https://coinchapter.com/trump-demands-rate-cuts-after-strong-jobs-report/
