US adds 172,000 jobs in May, pushing Fed rate cuts further back
What's new: Traders cut the odds of a June rate reduction and raised the chance of a rate hike by the end of 2026.
A stronger-than-expected US jobs report for May pushed Federal Reserve rate cuts further out of reach and sharpened the policy test facing new Chair Kevin Warsh. Nonfarm payrolls rose by 172,000, while earlier months were revised higher, reinforcing the view that the labor market remains firm even as inflation stays elevated. After the report, futures markets priced in a smaller chance of a cut at the Fed's June 16-17 meeting and increased the odds of a rate hike by the end of 2026 to about 70%, according to CME Group's FedWatch. The report also landed as Fed officials publicly challenged parts of Warsh's policy approach, including how to read inflation and whether future AI-driven productivity gains could ease price pressures.
Sources
- BloombergNeutral80% reliableRead →Jun 5
Earlier in this story
- 32 hours agoUS added 172,000 jobs in May as unemployment held at 4.3%
- 34 hours agoStrong US jobs data push Fed rate cuts further out of reach
- 37 hours agoUS adds 172,000 jobs in May, pushing Fed rate cuts further backreading now
- 37 hours agoUS added 172,000 jobs in May as unemployment held at 4.3%