June Jobs Jump Dims Odds of Near-Term Fed Cut

The June U.S. jobs report showed a stronger-than-expected gain of 147,000 jobs, primarily from government and non-private sectors, reducing the unemployment rate to 4.1%. This robust headline figure diminished the likelihood of an imminent Federal Reserve interest rate cut, with most analysts now expecting any monetary easing to occur in September at the earliest. Despite the positive numbers, analysts point to mixed signals underneath, including weak consumer spending and a shrinking immigrant workforce, which suggest the labor market's underlying momentum may be slowing. President Trump has increased criticism of Fed Chair Jerome Powell for not cutting rates more aggressively, but Powell and most policymakers remain cautious, citing solid economic fundamentals. The report prompted modest gains in the stock market and a notable rise in Treasury yields as investors adjusted their expectations. Overall, the labor market remains resilient, but uncertainties persist regarding future Fed policy.