The April jobs report showed stronger-than-expected growth with 177,000 new jobs and steady 4.2% unemployment, supporting Fed Chair Powell’s cautious approach to interest rates.
President Trump, however, is pushing for rate cuts, citing low inflation and decreasing costs in gas, groceries, and mortgages.
While inflation has slowed to 2.6% in March, it remains above the Fed’s 2% target. Market traders now see June rate cuts as less likely, especially as economists warn that Trump’s tariffs could significantly impact the economy in coming months.
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