The showdown between Trump and Powell will impact the job market in ways you can't imagine
Published on April 19, 2025
The job market in 2025 is chaotic - and it’s not just because of AI, layoffs, or hiring freezes. It’s also being shaped by a brewing economic clash between two of the most powerful people in the world: Donald Trump and Jerome Powell.
With Trump pushing tariffs across the board and Powell leading the Federal Reserve, their conflicting visions for the economy are on full display - and American workers are caught in the middle.
Trump’s Tweet Heard Around the Market
On April 17th, Trump fired off a tweet calling out Powell for always being "too late and wrong", indirectly accusing him of sabotaging growth when "Oil prices are down, groceries are down, and the USA is getting rich on tariffs". Whether you're a fan or not, when Trump tweets, markets move - and this was no exception.
Meanwhile, Powell calmly stood by the Fed’s current rate policy, saying "For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance," - signaling no interest rate cuts anytime soon.
What This Means for the Job Market
Rising interest rates make it more expensive for businesses to borrow, invest, and expand. That translates to fewer hires, longer job freezes, and more layoffs. On the flip side, Trump is pushing for aggressive stimulus and tax cuts, all while pushing tariffs on imported goods. This kind of strategy might pump short-term growth but guarantees long-term inflation as we have seen in the previous years.
The result? Economic uncertainty. And when the economy is uncertain, companies stop hiring - or they get extra picky. That’s why job seekers will see more ghosting, longer interview cycles, and roles that vanish halfway through the process.
“Markets are struggling with a lot of uncertainty, and that means volatility.” — Jerome Powell, April 16, 2025
So… What Should You Do?
You can’t control the situation developing on the macroeconomics side of things, but you can control how you show up to it. In a high-stakes job market like this, you need to play it safe and become more risk averse. The price of taking a risk now has increased dramatically so unless the payout it that much better, it would be ill-advised to pursue it.
While Trump and Powell battle it out over the economy, you’ve got your own career to fight for. Make sure you're equipped.