The Federal Reserve could actually cut interest rates next week

The Fed might actually slash rates next week after the Bureau of Labor Statistics’ report on Friday showed that nonfarm payrolls increased a seasonally adjusted 177,000 for the month, slightly below the downwardly revised 185,000 in March but above the Dow Jones estimate for 133,000.

Vicky Pryce, who works as chief economic adviser at the Center for Economics and Business Research, said the Fed will be watching these labor numbers closely ahead of their meeting next week. She said policymakers see these payroll figures as a clear signal of what the country’s business climate looks like right now.

Vicky pointed out that multiple surveys are already showing companies cutting back hiring plans sharply because of all the mess around trade policy. Nobody wants to take big risks when they don’t know what kind of trade barrier might hit next.

Vicky also mentioned a brewing problem that hasn’t even made it into the labor data yet. Some federal employees have already been told they’re losing their jobs, but those layoffs haven’t shown up in the job reports yet.

That hit is still coming unless there’s some kind of reversal. Vicky tied that to ongoing instability, including disruptions at companies like Tesla, where Elon Musk was recently rumored to leave. The whole economy feels unstable, and businesses are reacting by holding back.

Hiring freeze spreads as tariffs throw companies into chaos