US economy stumbles by creating just 75,000 jobs in May – business live

Dollar slides after America only created 75,000 new jobs last month, weaker than the 175,000 expectedLatest: US job creation unexpectedly weak last monthNFP up by 75,000 in MayEarnings growth drops to 3.1%Jobless rate at 49-year low of 3.6%Will Fed respond by cutting interest rates? 2.59pm BST Donald Trump’s top economic advisor (for a little longer anyway) is discussing the jobs report on Bloomberg TV.Kevin Hassett, head of the Council of Economic Advisors, denies that the escalation in the US-China trade war caused the drop in jobs creation.It’s hard to believe that a roadblock in the Chinese talks could have a major macroeconomic effect.White House economist Kevin Hassett blames flooding in the Midwest for the disappointing jobs number, not trade tensions, via @BloombergTV @FerroTVHassett: Trump will be briefed on the discussions with Mexico when he lands today at 4:30 returning from Europe and he will make a decision then. 2.41pm BST Ding ding! The New York stock market is open for business, and shares are rising.“Disappointing non-farm payrolls have now joined inflation and trade tensions as matters of concern for the US economy. 75,000 jobs were added in May against an average forecast of 175,000, which shows that the poor read in February was not just a one-off blip and that Trump’s tariffs rhetoric is highly likely to be having a negative impact on the much-lauded US labour market.“What will the Fed’s response be when it convenes for a regular meeting on 19 June? Will it change its forward guidance, increasing the likelihood of an interest rate cut in July? Or it may decide to bite the bullet and get ahead of the market.” Continue reading…
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