Donald Trump's renewed anger at Jerome Powell over delayed interest-rate cuts has intensified after a dramatic revision cut U.S. job growth by 911,000 since 2024-adding fuel to Trump's criticism of the Fed and amplifying political strife ahead of the Federal Reserve's September meeting. For months, Trump has been vocal in his frustration with Federal Reserve chair Jerome Powell for being "too late" to cut rates, and he just got fresh ammunition in the latest jobs report data revision.
The move is a chilling escalation of Trump's weaponization of the DOJ against perceived political opponents. It's also part of an obvious and long-standing effort to gain control of the Fed. Like the politicization of law enforcement, seizing power over the central bank is a power grab straight out of the authoritarian playbook, and one with predictable, ugly outcomes for America's economy and democracy.
WARREN: Did Donald Trump lose the 2020 presidential election? MIRAN: Thank you, Senator Warren. Joe Biden was certified by Congress as the president of the United States. WARREN: Right, so did Donald Trump lose that election? MIRAN: Um, as I just said, Joe Biden was WARREN: Did Donald Trump lose that election? Can you say the words, Donald Trump lost that election? Are you independent enough to say that. MIRAN: The Congress certified Joe Biden. WARREN: Wooo, all right. So, that was one.
As CNBC reports, ADP's private payrolls report issued this morning shows that private employers added 54,000 net new jobs last month, about one-third worse than the 75,000 positions economists had predicted, and barely half the 106,000 jobs added in July. This is bad news for the economy, but arguably good news for stock traders hoping to see the Federal Reserve cut its target interest rate at the FOMC meeting two weeks from now. And because rate cuts are generally considered "good" for making the stock market rise, investors don't seem too upset by today's bad employment news.
At its annual jamboree at Jackson Hole, Chair Powell signalled his apparent support for a rate cut later this month, stating that the softening labour market could offset the inflation risks from Trump's tariffs. The market had already been anticipating a 0.25% cut on 17 September but this cemented expectations and last week's crop of US data did little to change things.
US President Donald Trump's attempts to put pressure on the country's central bank, the Federal Reserve, pose a "very serious danger for the US economy and the world economy," the president of the European Central Bank (ECB), Christine Lagarde, said on Monday. President Trump has threatened to dismiss Fed Chairman Jerome Powell after repeatedly attacking him for not cutting short-term interest rates, and is also attempting to fire Fed Governor Lisa Cook.
For those who have studied the US president's long and troubling history of racism, the two events were more than mere coincidence. They were indicative of a man who has recently brought white nationalist perspectives from the margins back to the mainstream. Trump has vehemently denied that he is a racist, pointing to a modest increase in support among African American voters in last year's election, when his opponent was a Black woman.
Yesterday, Donald Trump posted a letter to Truth Social announcing that he had fired the economist Lisa Cook from her position as a member of the Federal Reserve Board of Governors. Whether this is true-whether Trump has, in fact, successfully fired Cook-is an unsettled question of enormous consequence. Under the law, a president can fire a Fed governor only "for cause." To clear that bar, Trump has accused Cook of having made false statements on a mortgage application.