Trump Wants $1 Trillion In Interest Relief — But Markets Slam The Door On Cuts

President Donald Trump doubled down connected his request for little involvement rates Wednesday aft a amazingly beardown January jobs study — portion markets reacted successful textbook manner by trimming expectations for complaint cuts.

The U.S. system added 130,000 jobs past month, good supra expectations of 70,000 and astir triple December's revised 48,000, according to the Bureau of Labor Statistics.

The unemployment complaint unexpectedly fell from 4.4% to 4.3%, portion wage maturation accelerated 0.4% period implicit period and 3.7% twelvemonth implicit year.

The header strength, however, was accompanied by sweeping downward revisions. Payrolls from April 2024 done March 2025 were chopped by 898,000 jobs.

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For each of 2025, occupation maturation was revised down to conscionable 181,000 — an mean of 15,000 per month, marking the weakest twelvemonth extracurricular of a recession since 2003.

Trump focused squarely connected the January upside surprise, brushing speech the historical revisions.

“Great jobs numbers, acold greater than expected!,” helium wrote connected societal media.

He added that the United States should beryllium paying "much less" connected its borrowings, stressing that beardown economical show warrants sharply little involvement rates and could prevention "at slightest 1 trillion dollar per year" successful involvement costs.

Trump's logic — that beardown economical information justifies little rates — runs antagonistic to accepted monetary argumentation thinking, wherever robust labour markets typically trim the urgency for complaint cuts.

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Investors responded not to Trump's call, but to the spot successful the labour data.

Before the report, traders were assigning astir a 75% probability to a 25-basis-point complaint chopped successful June, arsenic per CME FedWatch tool. That fell to 57% aft the release.

Similarly connected prediction level Polymarket, determination is simply a 39% accidental the Fed holds dependable successful June, rising by 9 percent points aft the report.

The marketplace pricing for 2 complaint cuts by year-end besides softened, with Fed futures present assigning a tiny but non-zero probability that the Federal Reserve leaves rates unchanged for each of 2026.

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Bank of America economist Aditya Bhave described the study arsenic "a feast for the hawks."