Jobs report sparks inflation fears; Trump responds
President Trump on Friday pushed back on inflation concerns sparked by a strong jobs report and argued that strong growth should be viewed as a positive for markets.
“With a great Jobs Report like the one just released, stocks should go up instead of down,” Trump said Wrote at Truth Social. “This has been the case for 200 years. Growth does not mean inflation! How else can a Country achieve GREATNESS???”
The Labor Department announced Friday morning that the U.S. economy 172,000 jobs added in May – Roughly twice as much as forecasters predicted. Unemployment rate was 4.3 percent same as previous month.
The positive numbers also add to the debate over whether the Federal Reserve, under Trump-backed Fed Chairman Kevin Warsh, will have enough room to cut interest rates later this year. Investors are watching closely for signs that sustained employment could slow the pace of interest rate cuts.
Faster economic growth and a stronger labor market tend to put pressure on prices; This could keep inflation high and prevent the Fed from lowering interest rates.
Global markets moved cautiously following the report on Friday, as the war in Iran and the closure of the Strait of Hormuz pressured oil supplies and crude oil prices rose. Wall Street felt the sudden shocks; Stocks fell, primarily among Big Tech companies, while bonds rose. Associated Press reported.
The S&P 500 fell 1 percent, the Dow Jones Industrial Average fell 125 points and the Nasdaq composite fell 1.6 percent, according to the AP.
Trump has seen this in recent weeks: approval rating is falling due to affordability concerns rising gas pricesand uncertainty about conflict in the Middle East are worrying voters ahead of the November midterm elections.
The national average for regular gasoline on Friday was $4.22 per gallon. According to AAA. Diesel prices remained high, averaging $5.38 per gallon, causing shortages in shipping and transportation even as oil prices showed signs of easing.
Crude oil prices were little changed on Friday; US benchmark West Texas Intermediate settled at $105.42 per barrel and Brent crude settled at $109.26 per barrel. Bloomberg Energy the numbers show.
Energy costs, which could feed inflation, were closely watched during talks between the United States and Iran on reducing tensions and reopening the strait, an important channel for oil transportation. seems to have stopped.
Still, the president praised job growth and creation as evidence of his administration’s economic strength I’m taking midterm examsThe message of affordability remains a central concern for voters.
