5 June 2026
If you are covering the latest US jobs data, please see the following comment from Richard Carter, head of fixed interest research at Quilter Cheviot:
“The US economy has smashed expectations with nonfarm payroll numbers coming in well above estimates. May saw the addition of 172,000 jobs, comfortably beating estimates of around 80,000. March and April’s figures were also revised upwards. Hourly earnings were up almost 3.5% too, and although this was slightly down on last month it highlights that the economy remains robust enough to withstand the fallout of the Middle East conflict.
“Ultimately, the Federal Reserve is going to have little choice but to keep interest rates higher for longer once again. With Kevin Warsh joining as Chair, he is going to have a very difficult time balancing the needs of the economy with the desires of the President. With the labour market looking this strong, and supposedly a deal imminent between the US and Iran, rate cuts will not be forthcoming soon, and if anything hikes still remain a real possibility.”
