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US Commerce Secretary Lutnick Blames Weak Jobs, Defends Tariffs, and Criticizes Fed Chair Powell

U.S. Commerce Secretary Howard Lutnick has asserted that tariffs are not the cause of the nation’s sluggish job growth, a stance he articulated during an interview with CNBC on Wednesday, December 3rd. This statement comes in the wake of a recent ADP report indicating a loss of private sector jobs.

Lutnick also defended the Trump administration’s tariff policy, emphasizing the government’s intention to prevail in its Supreme Court case regarding tariffs. He suggested that even if current tariffs are deemed unlawful, alternative measures exist to regulate imports, stating, “We will have tariffs in any event in the future.”

Furthermore, Lutnick addressed international trade relations, urging the European Union to fulfill the terms of previously negotiated agreements before engaging in new discussions. He noted the EU’s strong desire for a steel agreement with Washington, but cautioned that European economic policies are hindering the advancement of artificial intelligence by imposing restrictive regulations. “The EU’s tech rules are costing them dearly,” he remarked.

Trade and Investment Goals

Regarding other trade deals, Lutnick declined to comment on the progress of negotiations with Taiwan, citing that the U.S. is “in the middle of negotiations.” However, he highlighted the potential for an agreement with the self-governing island to attract increased investment to the United States.

“Our goal is to bring chip manufacturing and medicine production back to the U.S. We need to train 5 million Americans for jobs in the semiconductor industry. Xlight is trying to boost chip manufacturing,” Lutnick stated, underscoring a strategic focus on reshoring key industries.

Economic Outlook and Fed Leadership

Looking ahead, Lutnick projected a robust 4% growth for the U.S. Gross Domestic Product (GDP) in 2026. He also touched upon the potential IPO of Fannie Mae, though details remained vague.

Significantly, Lutnick revealed that President Trump had sought his opinion on the selection of the next Federal Reserve chairman, who would succeed the current incumbent, Jerome Powell. Lutnick was critical of Powell’s leadership, opining, “Trump has a good list of candidates. Powell is political, ridiculous. Interest rates should be lower, everyone knows that.” This direct criticism suggests a divergence in views on monetary policy between the Commerce Secretary and the head of the Federal Reserve.