Federal Reserve’s Timiraos: The Spring Hiring Rebound Shows the Rationale for Near-Term Rate Cuts Has Disappeared

According to Nick Timiraos, on June 5, Federal Reserve officials—along with those nicknamed the “mouthpiece of the Fed”—said that the spring hiring rebound will provide more evidence for Fed officials who are concerned about inflation. These officials believe that current interest rates are not enough to rein in the pressure from a fresh round of price increases.

The latest employment report further shows that the case for rate cuts over the coming months has largely disappeared, even though it has not yet fully settled internal Federal Reserve debate about a potential rate hike later this year.