Trump Pressures Fed After Solid Jobs, Cooling Inflation: 'Lower Its Rate!' (CORRECTED)

Editor's Note: This headline has been updated to reflect the accurate wording of Donald Trump's quote

President Donald Trump on Friday celebrated what he described as a "transition stage" of economic renewal, as recent economic data showed falling consumer prices and solid job growth, defying concerns that trade tariffs would reignite inflation or destabilize the labor market.

In a post shared Friday on Truth Social, Trump said gas prices had "just broke $1.98 a gallon," and claimed "no inflation," urging the Fed to lower interest rates. "Consumers have been waiting for years to see pricing come down," he said.

"The Fed should lower its rate!," Trump stated.

During a rally in Michigan this week, Trump took fresh aim at Federal Reserve Chair Jerome Powell, saying, "I have a Fed person who is not really doing a good job."

"You're not supposed to criticize the Fed," Trump added. "You're supposed to let him do his own thing, but I know much more than he does about interest rates."

The remarks extend a growing line of public criticism from Trump, who last month accused Powell of acting "too late and wrong" on rates. Still, the former president has assured investors he does not plan to remove Powell before his term ends in May 2026.

After the stronger-than-expected jobs report, traders scaled back bets on a June Fed rate cut, with odds dropping to 40% from 60%, according to CME FedWatch.

Strong Jobs Growth, Low Inflation Suggest Economy Doing Better Than Feared

The comments came as economic data released Friday by the Bureau of Labor Statistics painted a resilient labor market. Nonfarm payrolls increased by 177,000 in April, beating consensus expectations of 130,000.

While the figure marked a slight decline from the downwardly revised 185,000 in March, it reinforced market confidence that the U.S. economy remains on solid footing despite external shocks like tariffs.

On the inflation front, data released earlier in the week revealed that headline Personal Consumption Expenditures prices rose just 2.3% in March, slowing sharply from February's revised 2.7%. The monthly increase was flat, compared to February's 0.4% rise.

Core PCE, which excludes food and energy and is the Fed's preferred inflation gauge, cooled to 2.6% year-over-year, in line with expectations and down from 3%.

Month-over-month, core prices were also flat, beating expectations for a 0.1% rise.

Oil prices – as tracked by the United States Oil Fund USO – are on track to end their second straight week of declines, with WTI crude holding below $60 a barrel.

Year-to-date, U.S. gasoline futures – as tracked by the United States Gasoline Fund LP UGA – have fallen 10% to $2.04 a gallon.

Read now: