Trump Lashes Out at Xi and Powell Amid Mounting Economic Pressures
President Donald Trump took to social media overnight to vent his growing frustrations with key figures he depends on to achieve his ambitious economic goals.
Early Wednesday, Trump pointed to a disappointing jobs report from private payroll firm ADP — showing the weakest monthly hiring since March 2023 — as fresh justification for the Federal Reserve to cut interest rates. “ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!” Trump posted on Truth Social. (The European Central Bank has actually reduced rates seven times since June 2024.)
The comment marked another escalation in Trump’s long-running campaign to pressure Fed Chair Jerome Powell, whom he summoned to the White House last week to repeat his call for lower rates. That meeting prompted a rare, sharply worded statement from the Fed reaffirming its independence from political influence.
Trump’s early morning post followed another late-night message expressing frustration with Chinese President Xi Jinping over slow progress on a new trade deal.
“I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!” Trump wrote at 2:17 a.m.
Since returning to office with promises of quick economic relief, Trump has tried to reshape global trade rules in America’s favor. But progress has been slower than expected, as other nations — including China — have been reluctant to strike rapid new deals. At the same time, his sweeping tariff strategy faces legal hurdles, with some economists warning it could lead to “stagflation” — the toxic mix of high inflation, slow growth, and rising unemployment.
Adding to Trump’s challenges is growing dissent from once-loyal allies. Tech billionaire Elon Musk — previously one of Trump’s most prominent supporters — denounced the president’s sweeping economic agenda bill as a “disgusting abomination” on Tuesday. According to NBC News, House Speaker Mike Johnson said Trump is “not happy” about Musk’s reversal. Trump has yet to comment publicly on the matter.
The Congressional Budget Office estimates the bill could add $2.4 trillion to the national debt over the next decade. Trump has dismissed such concerns and continues to blame others for delays in advancing his economic platform — a message echoed by top administration officials.
“The president did say that he believes the Fed chair is making a mistake by not lowering interest rates, which is putting us at an economic disadvantage to China and other countries,” White House press secretary Karoline Leavitt said last week. “The president’s been very vocal about that, both publicly and now I can reveal privately as well.”
Upcoming economic reports may intensify the pressure. A federal jobs report due Friday is expected to show just 125,000 new jobs added in May, down from 177,000 in April. The data will be released one day after the European Central Bank is widely expected to cut interest rates again.
Still, Europe faces greater economic uncertainty than the U.S. Inflation in the eurozone is now below the ECB’s 2% target, and growth has slowed to just 0.3% in the first quarter. Germany, typically Europe’s economic powerhouse, has contracted for two consecutive years. Sluggish energy prices, slow wage gains, and a stronger euro are all weighing on the region’s growth prospects.
By comparison, Goldman Sachs forecasts that U.S. GDP could grow more than 3% in the second quarter.
Despite his frustrations, Trump may still have some leverage to push his agenda forward — though it could require compromise. Earlier this week, Federal Reserve Governor Christopher Waller, a Trump appointee, offered a nuanced outlook.
“As of today, I see downside risks to economic activity and employment and upside risks to inflation in the second half of 2025,” Waller said Monday at a conference in South Korea. “But how these risks evolve is strongly tied to how trade policy evolves.”
