Trade Tensions and Fed Caution Pressures U.S. Job Growth
U.S. job growth likely slowed in May due to tariff uncertainty, maintaining pressure on the Federal Reserve. The unemployment rate remained stable, but economic uncertainties, notably President Trump's tariff policies, challenge business planning. Despite the headwinds, wage growth continued, helping sustain consumer spending.
U.S. job growth seemed to decelerate significantly in May as uncertainties over tariffs weighed heavily on businesses, challenging the Federal Reserve's cautious stance on interest rates. Analysts believe the Labor Department's report due Friday will show consistent unemployment rates, and solid wage upticks that may bolster economic resilience for now.
Evidently, the broader economy faces growing pressures, partly attributed to President Trump's inconsistent tariff strategies, hindering businesses' long-term planning. With job gains poised to slow, opposition to Trump's fiscal moves from both lawmakers and figures like Elon Musk adds to the uncertain climate.
A Reuters survey indicates a likely uptick of 130,000 nonfarm payrolls in May, a decrease from April's 177,000 but surpassing the threshold needed for labor population growth. Business reluctance to lay off workers and optimism about the Fed maintaining stable interest rates through year-end inform this cautious optimism.
(With inputs from agencies.)
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