Non farm payroll in May exceeded expectations but growth slowed down, and the Federal Reserve's interest rate cut may be postponed

According to a report by Jin Shi, the Bureau of Statistics of the US Department of Labor released data on Friday showing that the non farm payroll in May increased by 139000 (previously revised down to 147000), higher than the market expectation of 130000 people. Under the influence of trade policy uncertainty, employment growth continued to slow down, and the unemployment rate remained at 4.2% for the third consecutive month. This may provide policy space for the Federal Reserve to postpone interest rate cuts. The US economy needs to create approximately 100000 jobs per month to keep up with the growth of the working age population. As US President Trump revokes the temporary legal status of hundreds of thousands of immigrants in the crackdown on immigration, this number may decrease. Most of this year's job growth reflects the hoarding of workers by businesses amid Trump's wavering on tariffs, which economists say hinders their ability to plan ahead. The opposition of hardline conservative Republicans in the US Senate and Musk to Trump's tax cuts and spending bills has added another layer of uncertainty to businesses. Employers' unwillingness to lay off employees may lead the Federal Reserve to adopt a wait-and-see attitude until the end of the year. The financial market expects that the Federal Reserve will maintain the benchmark overnight interest rate in the range of 4.25% -4.50% this month, and will resume loose policy in September.