Trump again calls for Federal Reserve chair to cut US interest rates as payroll data disappoints
US President Donald Trump has redoubled his calls for Federal Reserve Chair Jerome Powell to lower interest rates, noting that payroll processing firm ADP reported that job creation slowed in May.
"ADP number out. 'Too Late' Powell must now lower the rate. He is unbelievable. Europe has lowered nine times," President Trump said in a Truth Social post.
ADP reported today that US private payrolls increased far less than expected in May, increasing by only 37,000 jobs last month after a 60,000 rise in April that was revised downward. Economists polled by Reuters had forecast private employment increasing 110,000 following a previously reported gain of 62,000 in April.
It represents the smallest number of employees added in a month in more than two years, however some experts question the validity of the data.
"As usual, we suggest ignoring the message from the ADP employment report, mostly because it has had a very poor track record in recent years," said Oliver Allen, senior US economist at Pantheon Macroeconomics.
The ADP report, jointly developed with the Stanford Digital Economy Lab, comes ahead of a more comprehensive employment report that will be released on Friday by the Labor Department's Bureau of Labor Statistics.
That data is expected to report that private payrolls increased by 120,000 jobs in May after advancing by 167,000 in April, a Reuters survey showed. Overall nonfarm payrolls are estimated to have increased by 130,000 jobs after rising by 177,000 in April.
The unemployment rate is forecast to be unchanged at 4.2%
President Trump has hammered Powell for months in often personal attacks, with his calls for the Fed chair's resignation weighing on US stocks and financial markets.
His repeated attacks have raised questions about the continued independence of the US central bank under the Trump administration, although the US president last month said he would not remove the Fed chair before his term ends in May 2026.
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Irish Times
2 hours ago
- Irish Times
‘Nobody on the right or left is gonna buy a Tesla' - the Trump spat threat to Musk's business empire
What began as Elon Musk's embrace of right-wing populism has become a defining – and potentially harmful – chapter in his business career. By endorsing Donald Trump's MAGA movement and far-right parties in Europe, Musk alienated a big portion of his original customer base, eroding Tesla's brand , sales and market share around the globe. Then came this week's rupture: a personal and public break-up with Trump that prompted threats of retaliation from a man with control over the world's most powerful government. By simultaneously burning bridges with both his customers and now the political movement he funded and amplified for months, Musk now faces a rare convergence of threats: collapsing brand loyalty, shaky revenues, and mounting legal and regulatory risk. Tesla's sales are already stumbling under the weight of partisan baggage. SpaceX, long seen as a strategic national asset, is facing new scrutiny as political winds shift. And the green shoots at X – Musk's $44 billion 'free speech' experiment – that were fuelled by Musk's proximity to the White House and the ad dollars that followed, may soon disappear. READ MORE 'Elon isn't functioning to the benefit of his shareholders,' said Ross Gerber, the chief executive officer of Tesla shareholder Gerber Kawasaki, which has been reducing its Tesla holdings over the last few years. Speaking on Bloomberg Television on Thursday while the meltdown was still going on, Gerber said Musk's behaviour is leading to the 'dismantling of the Musk empire in real time.' With enemies on both flanks, Musk finds himself at the centre of a storm fuelled by consumer revolt and political hostility. [ Donald Trump 'not interested' in talking to Elon Musk Opens in new window ] [ Trump-Musk bromance descends into a jaw-dropping feud Opens in new window ] 'Nobody on the right is gonna buy a Tesla, nobody on the left is gonna buy a Tesla. Elon is a man without a country,' said Steve Bannon, an outside adviser to Trump who has long been critical of Musk, in an interview. Bannon says he is 'in continual conversations at the most senior levels' of the Trump administration to push them to revoke Musk's security clearance and use the Defense Production Act to seize SpaceX and Starlink on grounds they are vital to US national security. Even if Trump does not take such extreme measures, there is no shortage of retaliatory options for the White House. The president could try to wield the power of agencies like the US Securities and Exchange Commission, the National Highway Traffic Safety Administration and the Federal Aviation Administration to inflict real harm – or even just incessant regulatory morass – on to all of Musk's businesses and the source of his wealth. In just one day, the Musk-Trump spat shaved $34 billion from his personal net worth, the second-largest loss ever in the history of the Bloomberg Billionaires Index of the 500 wealthiest people on the planet. The only bigger wealth hit: his own wipeout in November 2021. Tesla lost $153 billion of market value on Thursday, with shares reversing course on Friday after Musk began to simmer down. Musk has faced deep stretches of pain before. There are flanks of sceptics who have, over the years, called for his impending demise only to be proven wrong by the world's richest man and his cult following of fans and funders willing to throw ever-growing sums of money at his ambitions. [ Elon Musk has damaged himself and shows no signs of stopping Opens in new window ] Most famously, Tesla flirted with bankruptcy only to reverse course and become the biggest electric vehicle seller in the world. Musk's $44 billion purchase of X was widely panned as the company's debt languished on banks' books, only to see those fortunes reversed after Trump's election. 'Musk has a habit of teetering on the edge of destruction and pulling himself back just in the nick of time,' said Nancy Tengler, whose firm holds 3.5 per cent of its growth portfolio Tesla stock, in a Friday interview on Bloomberg Television. Tengler, chief executive and chief investment officer of Laffer Tengler Investments, said her firm has been adding Tesla shares in recent months but now has a 'full position.' 'He needs to dial down the rhetoric and the drama and get back to the business,' she says, as investors own Tesla stock for growth, not for 'the histrionics.' To pull off a rebound this time around, Musk is going to have to convince people to start buying his electric vehicles at a faster clip and reverse the painful sales slide in the US, Europe and around the world. He is also going to have to attract riders to his new robotaxi service in Austin as the company makes a gigantic bet on artificial intelligence, robotics and self-driving cars. Musk has lobbied lawmakers to help clear a path for driverless vehicles, something Trump initially endorsed. It is now unclear if the Trump-Musk fallout complicates the regulatory environment for autonomous vehicles and potentially slows the path forward for Tesla's robotaxi network. 'The disagreement will not help Tesla demand but could potentially (temporarily) alienate multiple sides of the political spectrum,' said Morgan Stanley analyst Adam Jonas in a research note entitled 'Well That Escalated Quickly...' Jonas said emotions are 'running high' and that he is sticking to his long-term $410 price target on Tesla's share price but is bracing for near-term volatility and is 'prepared for the stock to give up more.' Other tests in the coming weeks may include a $5 billion debt offering of the billionaire's AI company, xAI Corp, as well as funding rounds for xAI and SpaceX. Musk recently closed a $650 million late-stage raise for his neurotechnology company Neuralink from big investors including Sequoia Capital, ARK Investment Management and Founders Fund. From a legal and regulatory perspective, there is even more at stake for Musk if the Trump administration turns on the billionaire and claws back contracts like the president threatened on Thursday. SpaceX, one of the world's most valuable start-ups with a market value of $350 billion, has received more than $22 billion in unclassified contracts from the Defense Department and Nasa since 2000, according to data from Bloomberg Government. It launches critical national security satellites for the Pentagon and the US is depending on the Musk-led company to develop a spacecraft to put American astronauts on the moon in as little as two years. Musk's vow to decommission its all-important Dragon spacecraft, which ferries cargo and people to the International Space Station for the US, sent shock waves throughout the industry. Following through with the threat, which Musk later walked back, would sever a vital part of the US space program. 'It is untenable to have a CEO of a prime defence and aerospace contractor threaten to shut down services the government has contracted with them to perform,' said Lori Garver, a former Nasa deputy administrator under former president Barack Obama. Garver says Nasa needs SpaceX, but that SpaceX's business model also depends, in part, on the US government. 'Elon has already walked back decommissioning Dragon, because they do require now, as a big part of their business plan, government contracts. But they provide a service for those contracts. So it's a symbiotic relationship,' Garver said. On a more day-to-day basis, government agencies could try to inflict pain on Musk's businesses by delaying everything from space launches to satellite service to robotaxi expansion. Investigations into publicly traded Tesla or the finances of his companies could include the SEC, as well as antitrust probes and Federal Trade Commission interest around social media moderation, data use or AI. So far, Musk and Trump may be trying to at least press pause on the public spectacle. White House officials say Trump plans to focus his attention on inflation and the economy rather than speak to Musk, and insinuated without evidence that the billionaire was agitating for a call with the president. (In a pair of posts on his social media platform Friday morning, Trump intensified his push for Federal Reserve Chair Jerome Powell to lower rates.) As for pulling Musk's government contracts, Trump has not yet pursued any steps to follow through with his threats, one of these people said. He is, however, thinking of getting rid of his Tesla. – Bloomberg
Irish Daily Star
3 hours ago
- Irish Daily Star
Trump refuses to speak to Musk after he 'lost his mind' as fiery feud continues
U.S. President Donald Trump has indicated that he's "not particularly" interested in talking to the former head of the Department of Government Efficiency after the two had a public spat. Speaking with ABC News, the president told ABC News Chief Washington Correspondent Jonathan Karl that he didn't want to talk to his former pal . "You mean the man who has lost his mind," Trump said. According to Trump , he was "not particularly" interested in speaking to Musk at the moment. It was also reported that Trump issued a statement to CNN saying, 'I'm not even thinking about Elon. He's got a problem. The poor guy's got a problem." When asked whether or not he plans to talk to the tech mogul Trump stated,'No. I won't be speaking to him for a while I guess, but I wish him well.' Read More Related Articles Melania Trump's true feelings towards Donald Trump picked up by lip reader Read More Related Articles Sisters, 9, 8 and 5, found dead on planned father visitation had zip-tied bags over heads It was reported that aides within Trump's camp are attempting to persuade the president to temper his anger at the tech mogul and avoid escalating the situation. (Image: AFP via Getty Images) This runs counter to a report that the White House has reportedly hinted at a truce between the warring Elon Musk and U.S. President Donald Trump. It was reported that aides within Trump's camp are attempting to persuade the president to temper his anger at the tech mogul and avoid escalating the situation. According to those closest to Trump, the White House has scheduled a call with Musk to try to broker a peace between the former pals. 'Oh it's okay,' Trump told POLITICO during a phone call on Thursday shortly after the feud erupted on social media. According to those closest to Trump, the White House has scheduled a call with Musk to try to broker a peace between the former pals. (Image: The Washington Post via Getty Images) "It's going very well, never done better," the president added. "The numbers are through the roof, the highest polls I've ever had and I have to go." The president's comments are a stark contrast to his earlier lambasting of Musk during his meeting with the German Chancellor yesterday. Several Republican allies attempted to ease the tensions between the two. Earlier in the day, the billionaire raged that the cost of legislation is projected to add $2.4 trillion to the deficit (Image: AFP via Getty Images) "I support @realDonaldTrump and @elonmusk and they should make peace for the benefit of our great country," hedge fund manager Bill Ackman wrote. Musk then retweeted the post, writing, "You're not wrong.' Earlier in the day, the billionaire raged that the cost of legislation is projected to add $2.4 trillion to the deficit. At the alleged urging of his aides, Trump tempered the verbiage of his posts. The outlet stated that aides told Trump to focus on the bill and getting it through the Senate instead of his conflict with the X CEO. The outlet stated that aides told Trump to focus on the bill and getting it through the Senate instead of his conflict with the X CEO. (Image: Getty Images) "I don't mind Elon turning against me, but he should have done so months ago," the president wrote. "This is one of the Greatest Bills ever presented to Congress. Trump rattled off the benefits of passing the bill before signing off with "MAKE AMERICA GREAT AGAIN!" The president's tempered language comes after loyal supporters slammed him for going after Musk. The president's tempered language comes after loyal supporters slammed him for going after Musk. (Image: AFP via Getty Images) The telling off from MAGA allies came almost two hours after Musk attacked the president on his own social media site, X. "Elon was 'wearing thin,' I asked him to leave," Trump wrote in the first post. "[I] took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!" Trump then doubled down on his comments in a second , but equally fiery post. "The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts," he added. "I was always surprised that Biden didn't do it!" This barrage against the former head of the Department of Government Efficiency did not sit well with many people on the MAGA site. Many of the users were spotted commenting on the post, saying that it was "not a good look" for the president. "Elon Musk helped to save our Republic last election cycle," one person commented. "Please stop this war of words between the two of you. If memory serves me correctly, something similar happened in Trump's first term with Elon." "You should fix this with a phone call, not through media," a second person commented. "Why are you picking a fight with one of your best allies. So stupid," a third person stated. "I wish President Trump and Musk would not trade public barbs like this," a fourth person pleaded. "It diminishes both of your accomplishments and makes you look like high school girls in a social media fight. Please, guys. Rein it in. We are so proud of you, both of you!"
Irish Times
6 hours ago
- Irish Times
‘Trump likes this German': Merz Oval Office test gets approval back home
Donald Trump cherishes his German heritage so much that, for years, he claimed his father's roots were in Sweden. That was a big personal reason – ahead of Ukraine or trade uncertainty – why Friedrich Merz was on high alert for his inaugural visit with the US president in the Oval Office. And that is why he ramped up the personal, and dispelled those Sweden rumours for good, by presenting the president with the calligraphic birth certificate of his grandfather. As Trump's admiring eye drifted to the golden frame, Merz kept shtum on why the same grandfather was run out of the Kingdom of Bavaria for good: for not doing his military service. Some things run in the family. READ MORE Before returning to Germany, a relieved Merz said he had felt Trump was 'a person I can speak to well on a very personal level'. Germany and the US had, he added, 'laid a foundation today for good personal but also political talk leading to constructive political goals'. In a private meeting Merz said the two had discussed the growing trade spat and, despite the EU lead here in Europe, promised 'close co-operation and special representatives' to shuttle between Berlin and Washington. Merz said that, in their meeting, he 'thought he succeeded' in impressing on Trump how German-owned car plants based in the US export as many cars to the rest of the world as BMW, Volkswagen and others export to the US. After leaving the White House, Merz was asked on Fox News about calls to ban the far-right Alternative for Germany (AfD), a move Merz views with a sceptical eye. He said his country cherished freedom of expression and allowed everyone to run for parliament. He also brushed off claims from US secretary of state Marco Rubio that Germany was drifting into 'tyranny', saying the issue 'was behind us' and had not come up in talks with Trump. [ Trade tensions simmer under surface of cordial White House meeting between Trump and Merz Opens in new window ] 'Germany is a mature democracy,' he said, 'and that's why we don't need lectures from outside.' When Fox asked about the spike in anti-Semitic attacks in Germany, as presented in a report this week , Merz attributed this to a struggle with 'imported anti-Semitism through all the migrants we've had in the last years'. Given that dealing with Russia was 'extremely complicated', Merz said he had asked the US president to intervene more strongly. And what of Trump's claim that, had he been president in 2022 Russia would never have invaded Ukraine ? Merz replied diplomatically: 'Speculation.' After Trump's chilly dealings with Angela Merkel – referred to by the US president curtly as 'her' – Merz was aiming to trigger a thaw, even if that meant smiling away Trump's second World War jokes. And on Friday morning a relieved Frankfurter Allgemeine joked that, with Trump, 'even criticism can be flattery'. This referred to Trump's joke that Merz can be 'difficult', to which the chancellor just smiled and nodded. 'Trump could use someone to talk to in Europe to solve problems, such as the Ukraine war,' the newspaper noted. 'During the chancellor's visit to the White House, it looked like Merz could be that partner.' The centre-left Süddeutsche Zeitung, no fan of Merz, headlined its editorial: 'Trump likes this German'. It admitted that Merz had apparently managed to build up a personal relationship with Trump. He also listened quietly while the president mentioned casually he would not withdraw troops from Europe, as threatened, after all. 'It speaks for Merz that he spoke up for Ukraine, whenever he was allowed speak,' the Süddeutsche noted. 'But the chancellor's demand that Trump increase pressure on Putin, Trump ignored that deliberately. The visit may have gone well for Merz, for Ukraine the result is devastating.'
