The White House expects the Federal Reserve to at least discuss the possibility of a larger interest rate cut at its meeting later this month. This follows new jobs data that revealed a weakening U.S. labor market, President Donald Trump’s economic advisor said on Friday.
Kevin Hassett, Director of the White House National Economic Council, told reporters that most analysts still anticipate a 25-basis-point cut. However, he noted that discussions about a bigger reduction are possible, even if they may not happen. The August report showed weaker job growth and an unemployment rate rising to 4.3%.
For months, Trump has urged the Federal Reserve to lower its benchmark rates. He argues that deeper cuts are essential to support his economic agenda and stimulate growth. Critics, however, warn that such pressure could threaten the central bank’s independence.
On social media, Trump criticized Fed Chair Jerome Powell again, writing that Powell should have lowered rates earlier. “As usual, he’s too late,” the president said after the disappointing jobs numbers.
The weaker employment data has added pressure on policymakers ahead of the Fed’s September 16–17 meeting. Markets largely expect at least a 25-basis-point cut to support the fragile labor market.
In a separate CNBC interview, Hassett said he expects the jobs figures to be revised upward. He also highlighted concerns about the struggling housing sector, which the White House is monitoring closely.
