President Trump, alongside his top cabinet members and some labor experts, is blaming the chair of the Federal Reserve, Jerome Powell, for August's weak jobs report, released this morning, which shows signs of a weakening American economy.
Jerome “Too Late” Powell should have lowered rates long ago. As usual, he’s “Too Late!”
— Trump Truth Social Posts On X (@TrumpTruthOnX) September 5, 2025
(TS: 05 Sep 10:16 ET)
U.S. Labor Secretary Lori Chavez-DeRemer on FOX Business' "Varney & Co." said the report was simply because Powell has refused to do his job. "Jerome Powell should be embarrassed by this report because he has not done his job," she said.
The Secretary of the Treasury, Scott Bessent, wrote an op-ed in the Wall Street Journal, arguing that the Fed, alongside the expansion of its abilities following the Great Recession in 2008, has handicapped its ability to effectively manage the American economy.
"The U.S. faces short- and medium-term economic challenges, along with the long-term consequences of a central bank that has placed its own independence in jeopardy," Bessent wrote. "The Fed’s independence comes from public trust. The central bank must recommit to maintaining the confidence of the American people."
Employco USA President Rob Wilson told Fox News Digital:
I agree with Labor Secretary Lori Chavez-DeRemer on her comments that it is time for the Fed to take action and lower interest rates. The number of job openings available is the lowest in 10 months. With an interest rate cut, you will see businesses start to hire in larger numbers. The lower rates will have a ripple effect across the economy.
August’s weak jobs numbers are a clear signal that interest rates may be too high, as President Trump has asserted. Higher interest rates are slowing economic growth, as intended by the Fed, but the jobs numbers are weak enough to justify a reconsideration of policy.
According to the Wall Street Journal, Powell had signaled earlier this year that he was waiting for a slowdown in the labor market before cutting the interest rates. He noted that America was at “a curious kind of balance,” where both the supply and demand for workers are slowing down. Interest-rate derivative traders believed that a rate cut in September was imminent, but stocks are down, signaling a lack of trust in the idea that a rate cut will cure the weakening labor market.
Chavez-DeRemer said that, thankfully, "Unemployment is still holding steady. Statistically, it's non-existent. So that's the key to the American people, is that we're leaning in, we're doing everything we can for this workforce." She believes that an interest rate cut will solve the rest of the issue.
"And now this is one more thing that the Fed can do, and Jerome Powell hasn't done his job," she added. "And the president, that's why he's been so vocal about this. We need those interest rates down." She pointed to some postivies from the jobs report:
Almost a half a million jobs have been created since the president took office. It's gonna take some time," she said. "What I do love to see is those 100,000 jobs of federal workers that have gone down, and we are gonna grow the private sector jobs. Eighty-four percent of the jobs out of the half a million are from the private sector, and we want to continue to see that investment by those businesses.
Wilson added that "The Federal Reserve’s strategy to cool the economy with higher rates is working – but perhaps too well. With inflation still running at about 2.7% headline and around 3% core, maintaining such tight monetary policy may push the economy from controlled cooling into excessive contraction."
Bessent, in his op-ed, concluded that "Overuse of nonstandard policies, mission creep and institutional bloat threaten the central bank’s independence. The Fed must change course."
To safeguard its future and the stability of the U.S. economy, the Fed must reestablish its credibility as an independent institution focused solely on its statutory mandate of maximum employment, stable prices and moderate long-term interest rates.