Trump presses Powell to cut rates; Fed survey finds job prospects sliding; Construction employment rises in most states

President Trump increased pressure on Federal Reserve Chairman Jerome Powell to lower interest rates, though some analysts warned that White House attempts to fire the Fed leader could significantly hurt already volatile financial markets.

Trump on Monday took to his Truth Social channel, renewing his calls for the Fed chief to lower interest rates immediately, citing factors such as recent declines in energy and food costs. National Economic Council Director Kevin Hassett said Friday that the Trump administration was studying Powell’s removal, though Powell has said he cannot be fired by the President under current law.

Economists and corporate leaders previously warned that recently enacted and pending tariffs affecting goods from numerous countries could increase inflation, reversing a trend of recent months in which U.S. consumer price increases have been cooling in several categories. Uncertainty over tariff impacts has also rocked stock markets and raised concerns about bond market prospects.

Stock markets have recently been volatile, amid shifts in White House tariff policies, rising tensions with China and ongoing talks with other trade partners. Attempts by Trump to fire Powell could trigger a “severe reaction” from markets, including equity selloffs, analyst Krishna Guha of Evercore told CNBC Monday.

The Fed’s next rate-setting meeting is scheduled for May 6-7, and Powell has indicated he is leaning toward leaving interest rates unchanged until there is more clarity on the effects of new trade tariffs on U.S. inflation. 

Satisfaction with wages, benefits and promotion prospects decreased in the latest national survey by the Federal Reserve Bank of New York. The regional Fed found respondents’ expected likelihood of receiving at least one job offer in the next four months declined to an average of 19.3% in the March survey, compared with 20.9% when the survey was last conducted in November 2024.

Researchers at the regional Fed, which conducts the survey every four months, said Monday that respondents’ average likelihood of working beyond age 62 was 47.3% in March, down from 50.6% in November. The average chance of working beyond age 67 also declined from prior surveys to 31.6% in March, compared with 34% in November.

Reflecting a hiring slowdown in some industries, the lowest wage that respondents would be willing to accept for a new job fell to an average of $74,236, down sharply from $82,135 in the November survey.

Construction employment increased in March compared with a year earlier in 31 states and the District of Columbia, according to the latest analysis of government data from the Associated General Contractors of America. But the trade group warned worker shortages in categories like manufacturing plant, energy and infrastructure construction will require increased recruiting from abroad as well as domestically.

Construction jobs also rose from the prior month in 30 states while declining in 17 states and D.C. But the trade group’s chief economist, Ken Simonson, said in a statement that job increases “are less widespread and robust than in 2024” as workers retire, leave the industry and in some cases depart the country amid recent government shifts in immigration policy.

The group warned that a shortage of qualified workers poses a threat to White House priorities such as boosting manufacturing in the United States. “The administration can’t meet its goals of bringing back manufacturing jobs unless there are enough construction workers with the right skills to build new plants,” Jeffrey Shoaf, the association’s CEO, said in the statement.

“The only way this can happen is with worker authorization programs that allow for construction workers to be hired on a timely basis,” Shoaf said.