White House Expects Fed Rate Cuts Amidst Disappointing Jobs Report

In the wake of a disappointing jobs report, the White House projects that the Federal Reserve might consider larger rate cuts. Kevin Hassett, White House National Economic Council Director, indicated that discussions might revolve around a higher cut, although the main expectation averages at 25 basis points.

Following the report, President Donald Trump criticized Fed Chair Jerome Powell for not lowering rates sooner. Trump's administration believes that reducing rates is crucial for bolstering economic growth. The dim jobs data highlights potential moves by the Fed to address the soft job market.

The broader trade war, particularly tariffs, has injected volatility into financial markets, adding to economic uncertainty. Concerns about U.S. economic data's credibility have surfaced, especially after the firing of the head of the Labor Department's Bureau of Labor Statistics. Despite recent challenges, there remains optimism about future economic growth.