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The Federal Reserve is quickly running out of reasons to cut interest rates
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The Federal Reserve is quickly running out of reasons to cut interest rates

CNBC·Jeff Cox·24 days ago
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Kevin Warsh, nominee for US Federal Reserve Chair, testifies during a Senate Banking Committee hearing on his nomination on Capitol Hill in Washington, DC, on April 21, 2026. Mandel Ngan | AFP | Getty Images If the Federal Reserve still has any reasons to cut interest rates in the near future, they're getting harder and harder to find. Friday's jobs report for April provided the latest evidence that the central bank's larger concern isn't a flagging labor market but rather a cost of living that is getting increasingly harder for ordinary Americans to bear. The nonfarm payrolls increase of 115,000 last month is hardly gangbusters, but is another sign that the jobs picture has stabilized at least enough to reduce the pressure for rate cuts. By comparison, there is scant evidence to say the same for inflation, likely pushing the rate-setting Federal Open Market Committee into a more hawkish posture where officials are comfortable staying where they are for a prolonged period.…

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