Particle.news

Download on the App Store

June Jobs Strength Keeps Fed on Hold, Slashes Cut Odds

Policymakers are holding rates to gauge the impact of tariffs on inflation following solid June job gains.

The Federal Reserve Building in Washington, D.C. (Dreamstime/Dreamstime/TNS)
Image
Image

Overview

  • U.S. employers added 147,000 jobs in June and unemployment fell to 4.1%, exceeding expectations despite private payroll softness.
  • Private sector payrolls saw their smallest monthly increase since October, highlighting uneven labor-market conditions.
  • Traders cut the odds of a July rate cut to 5% and reduced September cut probabilities to 68%, according to the CME FedWatch Tool.
  • Federal Reserve officials signaled plans to leave interest rates unchanged this month as they await clearer signs from tariffs on inflation.
  • President Trump escalated public pressure on Fed Chair Jerome Powell, demanding his resignation through Truth Social posts.