Trump urges the Federal Reserve to lower interest rates but data reduces the likelihood of that!
President Donald Trump renewed his call for the Federal Reserve to lower interest rates, pointing out that inflation rates have declined and the economy has shown signs of stability.
However, the strong jobs report released in April reduced the likelihood of such a decision at the upcoming June meeting.
According to Danica Temiraus from the Wall Street Journal, an analyst widely seen as an informal spokesperson for the Federal Reserve's trends, the positive labor market numbers make a rate cut in the near term less likely.
The U.S. economy added 177,000 jobs in April, exceeding expectations, while the unemployment rate remained stable at 4.2%.
The Federal Reserve is scheduled to hold its next monetary policy meeting on May 6 and 7, and most analysts expect interest rates to remain unchanged within the current range of 4.25% to 4.5%.
With only one monthly jobs report available before the June 18 meeting, the chance of a sharp economic downturn during that period appears limited.
Recent data showed growth in vital sectors such as healthcare, transportation, and financial activities, compared to a decline in employment in the federal government sector.