Trump Pressures Fed Chair Powell for Interest Rate Cuts Amid Weak Job Data

2 mins mins

Key Points:

Former President Trump criticizes Federal Reserve’s interest rate stance.
May ADP Private Payrolls report shows lower-than-expected job growth.
Potential impacts on cryptocurrency markets due to interest rate speculation.

In a recent turn of events, former President Donald Trump has once again criticized Federal Reserve Chairman Jerome Powell on social media for not reducing interest rates promptly. This comes as the ADP Private Payrolls report for May recorded a sharp decrease in employment growth, rising by only 37,000 compared to the expected 114,000.

The historically low job growth report has been met with concern among market analysts. The sharp discrepancy in payroll data heightens the pressure on Powell, who maintains a cautious ‘wait and see’ approach despite Trump’s push for action. Analysts note that Trump’s comparison to Europe’s monetary policies, where rates have been cut nine times, adds to the narrative of how divergent global monetary strategies can impact market expectations.

Crypto Market Awaits Fed Decision on Interest Rates

Market reactions have been swift, with significant speculation surrounding potential consequences for the cryptocurrency market. Crypto commentator Crypto Rover highlighted that a potential Fed rate cut would increase liquidity and risk appetite, potentially triggering a rally in digital assets like Bitcoin and Ethereum.

The Coincu research team notes that potential financial impacts of an interest rate cut include a boost in liquidity, likely benefiting cryptocurrencies. This aligns with historical trends that show crypto markets rallying on dovish monetary policy. Regulatory outcomes may still hinge on Powell’s cautious stance, as future Fed meetings remain pivotal.

“The economy has remained resilient, the policy stance is appropriate, and the Fed is now in a favorable position to wait and see without needing to rush into action…” — Jerome Powell, Chair, U.S. Federal Reserve

Current Market Data

Did you know? Interest rate cuts have historically led to increased investments in cryptocurrencies.

Bitcoin (BTC), currently priced at $105,096.79 with a market cap of 2.09 trillion USD, faced a slight decline of 0.26% in the last 24 hours. Despite recent fluctuations, BTC has seen gains over 30 and 60 days, according to CoinMarketCap.

bitcoin-daily-chart-1376 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 12:54 UTC on June 4, 2025. *Source: CoinMarketCap*

Analysts are closely monitoring the Fed’s upcoming decisions, as they could significantly influence market dynamics and investor sentiment in the cryptocurrency space.