Trump Urges Fed to Cut Interest Rates Amid Higher Job Growth

It was created 139,000 new jobs outside the agricultural sector in the USA in May, shows a report from the USA's labor market department. It was more than expected. President Donald Trump repeats the demand that the central bank Federal Reserve (Fed) lowers the interest rate.

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Trump Urges Fed to Cut Interest Rates Amid Higher Job Growth
Photo: Wilfredo Lee AP/TT

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Analysts had on average forecasted 126,000 new jobs, according to a compilation of forecasts made by the news agency Bloomberg.

Revised figures show that 147,000 new jobs were created in April.

The unemployment rate in May remained unchanged at 4.2 percent compared to April, as expected.

Demands reduction

The figures came an hour before the opening of the stock exchange in New York. After ten minutes of trading, all three major indices on Wall Street are between 1.2 and 1.3 percent higher.

An earlier report from the salary administrator ADP showed that only 37,000 new jobs were created in the private sector in the US in May, which was significantly lower than the average forecast of 114,000 new jobs.

Trump has several times previously accused Fed Chairman Jerome Powell of being slow. In a post on his social media platform Truth Social, Trump is now again demanding that the Fed lower the interest rate from the interval 4.25-4.50 percent.

"The loan costs should be much lower!!! " he writes.

"Buying Fed more time"

The Fed's inflation target is 2 percent. In April, core inflation fell to 2.5 percent according to the important so-called PCE measure - where food and energy prices are not included - from 2.7 percent in March.

Bret Kenwell, analyst at online broker Etoro, says that the US labor market still shows signs of some strength.

Today's solid labor market report buys the Fed more time, but Chairman Jerome Powell may have difficulty justifying a restrictive monetary policy if inflation continues to fall, he tells Bloomberg.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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