• Trump Ramps Up Pressure on the Fed:
President Trump renewed calls for a full percentage point rate cut, calling the Fed “too late” and demanding action as “Rocket Fuel” for the economy.
• Jobs Data Beats Expectations:
The U.S. economy added 139,000 jobs in May, above forecasts of 126,000. The unemployment rate held steady at 4.2%, signaling labor market resilience.
• Fed Rate Cut in June Now Off the Table:
Following the jobs report, analysts and traders believe a rate cut at the June 17–18 Fed meeting is highly unlikely.
• Trump vs. Powell – A Growing Rift:
Trump criticized Fed Chair Jerome Powell, contrasting U.S. policy with the 10 rate cuts by Europe’s central banks.
• Fed Holds Steady in 2025:
So far in 2025, the Fed has not changed rates after cutting by 1% in late 2024. Caution remains due to inflation risks and tariff impacts.
• Policymakers Prioritize Inflation Over Jobs:
Fed Governor Adriana Kugler and Kansas City Fed President Jeff Schmid emphasized the need to control inflation, despite some employment risks.
• Diverging Views Inside the Fed:
While some officials like Chris Waller argue to “look through” temporary inflation from tariffs, others are cautious about easing too soon.

What’s Next?
• While Trump’s push for aggressive easing reflects political urgency, the Fed’s cautious stance highlights a broader concern: sacrificing inflation credibility could do more harm than good. A balanced approach—grounded in data, not pressure—will be key in navigating the next phase of policy.