President Donald Trump renewed his call for the Federal Reserve to cut interest rates, noting that inflation rates have declined and the economy has shown signs of stability.
However, the strong jobs report released for April reduced the likelihood of such a decision being made at the upcoming June meeting.
According to Nick Timiraos from the Wall Street Journal, an analyst widely seen as an informal spokesperson for Federal Reserve trends, positive labor market numbers make an interest 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 in 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 has shown growth in vital sectors such as healthcare, transportation, and financial activities, compared to a decline in employment in the federal government sector.
Federal Reserve officials confirmed that any interest rate cut would require clear signs of weakness in the labor market or a slowdown in demand.
After the jobs report was released, the odds of an interest rate cut in June fell from 58% to 40%, according to the CME FedWatch Tool, reflecting a shift in investor expectations who now believe that the Federal Reserve will maintain its current policy.
Trump, in his statements, pointed to declining gasoline prices, grocery and energy costs, in addition to a relative improvement in mortgage rates, considering these indicators support a rate cut to boost growth, emphasizing that there is currently no inflation.

The crypto market is expected to be affected by any decision to cut or raise interest rates, and history bears witness to that.
