Week In Review

It was a refreshingly slow week in terms of economic news. Of note, Fed Chair Jerome Powell made public comments on both the strength of the labor market and his worries about where inflation may be heading. Starting with the former, we continue to see positive signs that the labor market is in good shape. We're not seeing signs of mass layoffs despite a cacophony of calls that we're either already in or at least on track for a recession. Weekly claims for unemployment insurance have remained steady over the past several months, and the unemployment rate remains low. While progress on inflation was seen last month with the rate slowing more than expected, Powell discussed his concerns that, depending on how long the tariffs are in place, we may see persistent increases in inflation, which makes his job more difficult. Responding to those comments, President Trump said Powell's departure from the Fed "can't come fast enough." While President Trump would like to see the Fed cut rates today, the market is still pricing in the first rate cut at the Fed's June 18 meeting.