After a steady May jobs report that was released Friday, economists are at a crossroads about their view on the monetary policy. While some believe that the Federal Reserve should hold onto its “wait and see” stance, others affirm that the central bank can start cutting interest rates.
What Happened: While most economists were in consensus that the Federal Reserve should wait for the tariff implications to play out before cutting interest rates. Jamie Cox, the managing partner at Harris Financial Group, believed that the Fed should start cutting interest rates as soon as July.
“The labor market is strong, but cooling. I expect this report, with all its revisions, to bring the Fed back into cutting mode in July,” he said.
According to the data shared by the Bureau of Labor Statistics, the nonfarm payrolls rose by 139,000 in May, beating consensus expectations of 130,000. However, it was lower than its average monthly gain of 149,000 over the last 12 months.
However, Chris Zaccarelli, the CIO at Northlight Asset Management said, “The Fed should be …