Trump Asks the Fed to Cut Interest Rates Again

President Donald Trump on Friday again asked the Federal Reserve to cut interest rates, as his administration continues to process the latest US jobs report.

Nonfarm payroll employment rose by 177,000 in April, the Bureau of Labor Statistics reported. This follows March’s report, which was revised down to an increase of 151,000 jobs. Economists polled by Dow Jones had been expecting an employment gain of 190,000.

The unemployment rate stayed unchanged at 3.8%, while average hourly earnings rose by 0.2%, in line with expectations. Economists expected a 0.3% increase.

In a series of tweets, Trump highlighted the "very low" consumer prices and "tremendous" job growth. He stated that the "unfair Tariffs are being paid by China" and that the Fed should "cut interest rates to stimulate (open up) the economy."

The U.S. has a very strong Dollar, especially relative to other major currencies, which is putting pressure on our farmers and exporters. Tariffs are being paid by China, not the U.S., and will be used to fill up the Treasury. Factor in the very low inflation and the tremendous job growth, the Fed should cut interest rates to stimulate (open up) the economy even more.

— Donald J. Trump (@realDonaldTrump) April 5, 2025

The president has previously made similar requests for rate cuts during his economic updates, especially when highlighting positive jobs or economic data. However, despite Trump’s push, the Federal Reserve has no plans to change its stance just yet.

After the March meeting, Fed Chair Jerome Powell said that the central bank must consider long-term risks when making rate decisions. He added that cutting rates too early would reduce the Fed’s ability to act if real problems emerge later.

Powell Keeps Interest Rates Unchanged Despite Inflation Risks

Jerome Powell and other members of the Federal Reserve are still concentrating on managing inflation and observing global trade risks. A key concern for them is the uncertainty arising from the U.S. tariffs, which Powell has highlighted in recent comments.

These tariffs make it difficult to predict how the economy will develop in the coming months, and they could destabilize U.S. finances if they are not handled carefully. Due to this uncertainty, the Fed believes that reducing interest rates prematurely—especially after a strong jobs report—carries risks.

Lowering rates now would diminish the available tools for responding should a substantial economic crisis occur later. Therefore, Powell has emphasized the need to defer any changes until long-term risks become more apparent.

Earlier this year, Trump threatened to remove Powell over their differences in opinion regarding U.S. monetary policy. However, federal law prevents the president from firing the Fed chair without cause. When Trump first made the threat, it sparked brief volatility in the markets, but the president later backed down from the statement.

Market data from the CME Group indicates almost no chance of a rate cut during the next Fed meeting. According to the CME rate prediction tool, traders anticipate the Fed to keep rates steady, especially following the labor market report.

Crypto Market Reacts To Trump Rate Cut Pressure

The crypto market is often impacted by shifts in interest rate expectations. When interest rates are low, assets like Bitcoin and Ethereum may see increased demand as investors tend to move their money away from traditional savings options into higher-risk assets that offer the potential for better returns.

President Trump’s call for the Federal Reserve to cut interest rates has sparked speculation in the crypto sphere about a possible bullish move. However, it’s important to note that the U.S. central bank does not make its decisions based on how crypto markets behave.

Instead, the Fed focuses on indicators such as employment data, inflation trends, and the overall stability of the U.S. economy when deciding whether to adjust interest rates.

In recent months, there have been reports about Bitcoin’s price impact after rumors of a policy shift by the Fed or Trump’s stance on cutting interest rates. These reports have sparked short-term price reactions among crypto investors. However, the current data from the CME group shows no immediate changes expected in Chair Powell’s interest rates.

Analysts Say Fed Unlikely To Cut Rates Soon

Justin Wolfers, an economist at the University of Michigan, shared his thoughts on the Federal Reserve’s likely response to the April jobs figures.

“I’m almost certain that the Fed remains on hold at its next meeting. The real economy (so far) is strong enough to not warrant a rate cut. And the big questions are all just over the horizon. Powell has been clear: He doesn’t want to guess what’s over that horizon, he wants to wait & see. The report is absolutely legit. White House interpretations are a different issue.”

His remarks align with the latest figures from the CME rate prediction tool,