Non-farm payrolls in May exceeded expectations but growth slowed down, Fed rate cuts may be delayed

PANews June 6 news, according to Jinshi report, the U.S. Department of Labor Statistics released data on Friday showing that non-farm employment increased by 139,000 in May (the previous value was revised down to 147,000), higher than the market expectation of 130,000. Under the influence of trade policy uncertainty, employment growth continued to slow down, and the unemployment rate remained at 4.2% for the third consecutive month, which may provide policy space for the Federal Reserve to postpone interest rate cuts. The U.S. economy needs to create about 100,000 jobs per month to keep up with the growth of the working-age population. This number may decline as U.S. President Trump revokes the temporary legal status of hundreds of thousands of immigrants in his crackdown on immigration. Most of this year's job growth reflects that companies are hoarding workers as Trump wavers on tariffs, which economists say hinders their ability to plan ahead. Opposition to Trump's tax cuts and spending bills by hard-line conservative Republicans in the U.S. Senate and Musk has added another layer of uncertainty to companies. Employers' reluctance to lay off employees may keep the Federal Reserve on the sidelines until the end of the year. Financial markets expect the Federal Reserve to keep its benchmark overnight interest rate unchanged at 4.25%-4.50% this month and resume its accommodative policy in September.

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