Strong jobs report fuels inflation fears

Trump responds to hot jobs report, inflation concerns

President Trump on Friday pushed back on inflation concerns driven by a strong jobs report, arguing robust growth should be viewed as a positive for markets.

© The Associated Press

“With a great Jobs Report, like just announced, stocks should go up, not down,” Trump wrote on Truth Social. “That’s the way it was for 200 years. Growth does not mean inflation! How else can a Country attain GREATNESS???”

The Labor Department reported Friday morning that the U.S. economy added 172,000 jobs in May — roughly double what forecasters projected. The unemployment rate was 4.3 percent, the same as the previous month.

The positive numbers also add to the debate over whether the Federal Reserve, now under Trump-backed Fed Chair Kevin Warsh, will have room to cut interest rates later this year. Investors are closely watching for signs that sustained hiring could slow the pace of rate cuts.

Faster economic growth and a stronger job market tend to add pressure to prices, which can keep inflation elevated and prevent the Fed from cutting rates.

Global markets moved cautiously on Friday following the report, as the war in Iran and closure of the Strait of Hormuz have stifled the oil supply and pushed crude prices higher. Wall Street felt the immediate shocks, as stocks fell primarily among Big Tech companies, though bonds surged, The Associated Press reported.

The S&P 500 dipped by 1 percent, the Dow Jones Industrial........

© The Hill