The U.S. economy just hit a speed bump that’s got Trump administration heavyweights pointing fingers straight at Federal Reserve Chairman Jerome Powell, Fox News reported.
The latest jobs report for August paints a grim picture, with only 22,000 new jobs added against expectations of 75,000, prompting sharp criticism from top officials who argue the Fed’s high interest rates are choking economic growth.
Let’s break this down. The Labor Department’s numbers show a measly 22,000 jobs created last month, a far cry from the 75,000 economists had forecasted. That’s not just a miss; it’s a signal something’s off in the engine room of our economy.
Adding salt to the wound, the unemployment rate ticked up to 4.3% from 4.2% in July, meeting gloomy expectations. Meanwhile, job openings are at their lowest in 10 months, according to Employco USA President Rob Wilson. It’s hard not to wonder if the Fed’s tight grip on rates is squeezing the life out of hiring.
“Jerome Powell should be embarrassed by this report because he has not done his job,” U.S. Labor Secretary Lori Chavez-DeRemer declared on FOX Business. Well, that’s a polite way to say the Fed’s asleep at the wheel while businesses struggle to grow.
“Jerome ‘Too Late’ Powell should have lowered rates long ago,” President Donald Trump posted on Truth Social. If the man at the top is calling out delays, perhaps it’s time for the Fed to stop dragging its feet and rethink its strategy.
Treasury Secretary Scott Bessent didn’t hold back either, writing in a Wall Street Journal op-ed that the Fed’s post-recession policy experiments have undermined its ability to steer the economy. “The U.S. faces short- and medium-term economic challenges,” Bessent warned. Sounds like a call for accountability when trust in the central bank is on shaky ground.
Bessent further argued that “overuse of nonstandard policies” threatens the Fed’s independence. When a key official says the central bank’s mission creep is a problem, it’s a reminder that sticking to core mandates—jobs and stable prices—shouldn’t be optional.
On the inflation front, numbers are hovering at 2.7% headline and near 3% core, per Rob Wilson. That’s not runaway, but paired with weak hiring, it suggests the Fed’s rate hikes might be cooling things a bit too much. Balance, anyone?
“August’s weak jobs numbers are a clear signal that interest rates may be too high,” Wilson told Fox News Digital. When industry voices align with administration critiques, it’s tough to ignore the chorus demanding rate relief.
Wilson added, “With an interest rate cut, you will see businesses start to hire in larger numbers.” That’s a practical take—lower rates could indeed unleash a hiring wave, something our economy desperately needs right now.
Chavez-DeRemer also highlighted some silver linings, noting nearly half a million jobs created under President Trump’s watch, with 84% from the private sector. “What I do love to see is those 100,000 jobs of federal workers that have gone down,” she said. Shrinking bureaucracy while boosting private growth? That’s a win conservatives can cheer.
Yet, Chavez-DeRemer circled back to the Fed’s inaction: “Jerome Powell has not done his job. He needs to lower that interest rate.” Her frustration mirrors a broader sentiment that while the administration and Congress have pulled their weight, the Fed remains the stubborn holdout.
“The president, that’s why he’s been so vocal about this,” Chavez-DeRemer added. When leadership at the highest level is sounding the alarm, it’s a cue for Powell to listen before more jobs slip through the cracks.
With the Federal Reserve declining to comment to Fox News Digital, the silence speaks volumes. The pressure’s on, and as Wilson aptly put it, “It may be time for the Fed to strike a better balance.” Let’s hope the central bank wakes up before this slowdown turns into a full-blown stall.
