🔍 Trump Pressures Fed Chair Powell Following ADP Job Loss
Overview of the Clash
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Catalyst: On June 30, ADP reported a shocking 33,000 private-sector job loss in June, its first drop since March 2023 businessinsider.com+12reuters.com+12youtube.com+12youtube.com+6reuters.com+6thedailybeast.com+6.
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Trump's reaction: Former President Trump publicly criticized Fed Chair Jerome Powell—labeling him “Too Late”—and demanded immediate rate cuts via handwritten notes and posts on Truth Social foxbusiness.com+4reuters.com+4thedailybeast.com+4.
🔥 What Trump Said & How He Said It
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Posted on Truth Social:
“ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!” streetinsider.com+3foxbusiness.com+3reuters.com+3
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Delivered handwritten notes via the White House press briefing, comparing U.S. rates (4.25–4.5%) unfavorably to the ~1% charged globally, and calling for drastic cuts politico.com+11reuters.com+11marketwatch.com+11.
📊 Data & Market Implications
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The weak ADP jobs figure boosted expectations of earlier-than-expected Fed action, pushing gold higher as investors anticipated a dovish shift yahoo.com+15reuters.com+15reuters.com+15.
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Yet Powell responded firmly, reiterating a data-driven approach, saying cuts depend on incoming economic stats—including jobs, inflation, and tariff policies thetimes.co.uk+2reuters.com+2reuters.com+2.
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Market sentiment: Treasury yields eased as traders digested the clash between political pressure and central bank prudence linkedin.com.
⚠️ Stakes & Risks for the Fed’s Independence
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The campaign against Powell reignites concern over politicization of the Fed, raising alarm among institutional investors and reserve managers yahoo.com+15reuters.com+15reuters.com+15.
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Trump hinted at potentially replacing Powell in 2025—prompting speculation about appointing a “shadow chair” or installing a more dovish candidate, which could unsettle inflation expectations and shake bond markets marketwatch.com+2businessinsider.com+2reuters.com+2.
🗓️ What to Watch Next
Event | Why It Matters |
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July 2 Nonfarm Payrolls | ADP is volatile—official BLS numbers will heavily influence Fed outlook |
July 9 Tariff Deadline | New tariffs could put upward pressure on inflation, counter to rate cuts |
Fed Meeting July 29–30 | A critical moment: Powell could affirm or dismiss July cut expectations |