May 2025 Jobs Report Signals Economic Slowdown Amid Fed Pressure

America’s politics and economy are at a new turning point. On one hand, there is a slowdown in Jobs Report , on the other, President Trump is openly pressuring Federal Reserve Chair Jerome Powell to cut interest rates. He wrote on Truth Social:

“ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE. He is unbelievable!!!”

This is not just a rant — it gives rise to two big questions:

• Is Trump’s pressure on Powell a threat to the independence of the Federal Reserve?

• Is the rate cut justified on the basis of low hiring data, or is it just a political narrative?

Trump vs Powell: Is the Federal Reserve now becoming a political puppet?

The Federal Reserve’s Jobs Report is to keep monetary policy away from political influence — so that economic decisions are neutral and data-driven.

But when leaders like President Trump repeatedly publicly pressurize the Fed Chair by saying “lower the rate,” investor confidence begins to waver.

If the Fed’s independence is compromised, both long-term inflation control and market stability are at risk.

Although Powell has previously maintained her stance despite Trump’s pressure, this interference could be even more dangerous in an election year.

Does Weak Hiring Data Justify a Rate Cut?

According to the ADP report, private sector hiring is sluggish in May 2025 — but is a single data point enough to make such a big decision?

Economists say:

• Conclusions should not be drawn from ADP data alone.

• Government jobs report and inflation numbers should also be waited for.

• The Fed’s Jobs Report is to make decisions based on long-term macro indicators, not to come under pressure from political tweets.

Rate cut should happen only when the economy is clearly in slowdown — not when the White House tweets.

Conclusion

Trump’s repeated attacks on Powell are not just a political tactic, but challenge the credibility of the Federal Reserve. At the same time, cutting panic rates on the basis of weak hiring data is not a good approach to economic policy.

This article gives a clear signal:
👉 Maintaining a balance between politics and economics is important for both democracy and markets.