In a new comment reflecting the US administration's stance on monetary policy, President Donald Trump welcomed the figures released today showing better-than-expected job growth in January. Trump used this data to reiterate his firm position that the United States should pay significantly lower borrowing costs than currently exist, emphasizing the strength of the US economy as a key justification for this demand.
Trump: We are the strongest and we should pay less
The US president stated in a post on his social media platform, Truth Social: “The United States should be paying far lower costs on its loans (bonds), and we are once again the strongest country in the world, therefore we should be paying the lowest interest rate ever.” This statement comes at a sensitive time for financial markets, as the economic community awaits any signals regarding the direction of the Federal Reserve’s monetary policy.
Trump pointed to the positive January data, saying, "U.S. employers added 130,000 jobs in January, a surprisingly strong number." However, the president didn't ignore the other side of the government report, adding, "But government revisions reduced the number of jobs created last year by hundreds of thousands," referring to the discrepancy between the initial data and the final revisions.
Negative reviews and labor market challenges
According to a report released today by the U.S. Department of Labor, the unemployment rate in the United States fell to 4.3% in January. However, the report included significant revisions to previous data, resulting in a sharp reduction in the number of jobs created last year to just 181,000. This is the weakest level of employment since the start of the COVID-19 pandemic in 2020, and less than half the previously reported figure of 584,000.
In a related context, the Bureau of Labor Statistics of the US Department of Labor stated that the number of jobs created by the US economy in the 12 months to March 2025 was 862,000 fewer than previously estimated, casting doubt on the accuracy of the preliminary data on which markets rely to price interest rates.
The economic context and the importance of interest rate cuts
President Trump's call for lower interest rates takes on particular significance in the current economic climate. High interest rates increase the cost of servicing the US national debt, which has reached record levels. When the president demands that the United States pay "the lowest possible interest rate," he is referring to the yields on US Treasury bonds. Lowering interest rates not only reduces the burden of government debt but also stimulates investment and consumer spending, two key drivers of economic growth.
Economic analysts believe that the significant downward revisions to last year's jobs figures could bolster the argument of monetary policy doves, who believe the economy may be weaker than the headlines suggest, thus warranting monetary easing (interest rate cuts) to avert a recession. Therefore, Trump's statements logically align with data indicating a hidden slowdown in the labor market despite the seemingly strong January figures.
Expected impact on global markets
Any move to lower US interest rates has far-reaching effects that extend beyond domestic borders. Globally, lower US interest rates typically lead to a decline in the value of the dollar against other currencies, which can boost US exports but increase the cost of imports. Emerging markets also often benefit from lower US interest rates, as capital flows in search of higher returns outside the United States. President Trump's statements remain a strong indicator for investors regarding the likely future direction of economic policy in Washington.
