WASHINGTON — The White House expects the Federal Reserve to at least consider a possible larger rate cut when it meets later this month after last month's job data showed a "disappointing" labor market, President Donald Trump's economic adviser said on Friday.
"The main market expectation is 25 basis points. But I would guess that there would be an expectation, a discussion of a higher cut, but I wouldn't expect it to happen," White House National Economic Council Director Kevin Hassett told reporters after Friday's report showed weaker job growth in August as the unemployment rate rose to 4.3%.
Trump for months has been pushing the U.S. central bank to lower its benchmark rates, saying the cuts are needed to help bolster his economic policies and fuel growth, even as some critics have raised questions about threats to the Fed's independence.
"Jerome 'Too Late' Powell should have lowered rates long ago. As usual, he's 'Too Late!'" Trump wrote in a post on his social media platform following the jobs data.
Friday's dim jobs data has raised some alarm bells and is seen likely to push Fed policymakers to seek to shore up the fragile job market with at least a 25-basis-point rate cut when they meet on Sept. 16-17.
"It's a little bit of a disappointing job number, but I pretty much expect it's going to revise up," Hassett told CNBC in a separate interview.
"The housing sector is still a disappointment. It's something we're studying closely at the White House," he added.
Contributing: Katharine Jackson
