Trump touts ‘strongest’ jobs growth in May, attacks Fed over interest rates
Washington: President Donald Trump has hailed stronger-than-expected US jobs growth in May, saying the latest employment figures showed the economy was outperforming forecasts despite ongoing tensions with Iran.
Speaking at an agriculture roundtable in Chippewa Falls, Wisconsin, on Friday (local time), Trump said the US economy added 172,000 jobs in May.
“For the third month in a row, the jobs numbers … smashed all expectations,” Trump said.
He said economists had projected far fewer jobs.
“172,000 jobs were created in May,” Trump said. “Experts predicted 30,000 jobs.”
Trump described the figures as the strongest employment report of his current administration.
“These are the strongest job numbers of the entire administration so far,” he said.
The President also pointed to gains in manufacturing and construction employment.
“In a single month, we added 7000 new manufacturing jobs and 17,000 new construction jobs,” Trump said.
He said earlier employment reports had also been revised higher.
“The previous two months were revised upward by nearly 100,000 jobs,” Trump said.
Trump used the occasion to criticise the Federal Reserve’s approach to interest rates, arguing that economic growth, rather than tighter monetary policy, was the best way to contain inflation.
“When you have great job numbers, the stock market goes down because they think interest rates will go up,” he said.
“You know what else stops inflation? Growth actually stops inflation.”
The President also renewed criticism of Federal Reserve Chairman Jerome Powell, whom he has frequently accused of keeping interest rates too high.
Trump said former Federal Reserve governor Kevin Warsh would “do a fantastic job”.
Beyond the labour market, Trump argued that investment commitments and factory construction were driving economic momentum.
“We’re building more plants than at any time in the history of our country,” he said.
Trump claimed the United States had attracted “$18 trillion” in investment commitments since he returned to office.
He also highlighted wage growth, particularly for manufacturing workers.
“For manufacturing workers, wages are up more than 8 per cent since I took office,” Trump said.
The President linked the economic gains to his administration’s trade, energy and tax policies. He argued that lower energy prices and increased domestic investment would continue to support growth in the months ahead.
