President Donald Trump has repeatedly criticized his own Federal Reserve chair, Jerome Powell, for keeping U.S. interest rates too high, despite a projected slowing in the economy. Yet a Labor Department report Friday showed that U.S. jobs growth continued at a strong pace in June, prompting some economists to assert that drastic monetary stimulus isn't warranted.
The poor economic trend in the past 10 months or so is pointing toward an interest rate cut. But looking under the hood of that data could paint an even darker picture.
A Labor Department report Friday showed the U.S. economy adding jobs at a faster-than-expected pace in June -- signaling to traders that the Federal Reserve might not need to cut interest rates sharply at a meeting later this month. Higher-than-expected interest rates could help banks' lending margins.
A report Friday from the Labor Department shows the U.S. economy added 224,000 jobs in June, following a disappointing increase of 75,000 in May. Economists had forecast a gain of 160,000 jobs.
Recent data show President Trump's economy is slowing, less than two years after he campaigned for $1.5 trillion of federal-deficit-boosting tax cuts on a promise of faster long-term growth.
Private companies add a net 102,000 jobs in June, according to the payroll firm Automatic Data Processing. Economists had expected an increase of 140,000 jobs.
Despite a slowdown, U.S. manufacturers are still in expansion mode, and that may make it harder for the Federal Reserve to justify interest-rate cuts, Bank of America says in a new report.