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Business Insider
Business Insider
The clever new scam your bank can't stop

The clever new scam your bank can't stop

The New York Times

The New York Times

Solid Jobs Report Reinforces Fed’s Patient Approach to Interest Rate Cuts

Fri, 02 May 2025 16:12:59 GMT
Solid Jobs Report Reinforces Fed’s Patient Approach to Interest Rate Cuts

A solid labor market has for months given the Federal Reserve comfort that it could hold off on interest rate cuts until it had more clarity about how President Trump’s policies would impact the economy. New data released on Friday reinforced that patient approach.

Officials at the central bank are widely expected to keep interest rates steady when they announce their next decision on May 7. After lowering interest rates by a percentage point last year, the Fed has since January opted against making additional reductions. That has left interest rates at a range of 4.25 percent to 4.5 percent.

Until this point, officials have felt little urgency to lower interest rates because the economy so far has stayed on solid footing. Mr. Trump’s attempts to reset global trade relations through steep tariffs now risk upending that.

Despite the president’s decision in April to temporarily pause more stringent levies from taking effect on nearly all of the country’s trading partners, businesses have struggled to navigate the uncertainty. Many have shelved big investments and slowed hiring, and some are already raising prices. Surveys suggest that consumers also have turned much more downbeat about the outlook, fueling concern that this pessimism will eventually translate to less spending.

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