The US economy just posted a jobs report that blew past expectations, and President Donald Trump’s takeaway is straightforward: the Federal Reserve should not even think about raising interest rates.

In an NBC interview, Trump argued that strong employment numbers are a reason to keep rates low, not to tighten monetary policy. The May 2026 jobs report showed 172,000 nonfarm payrolls added, crushing the consensus estimate of roughly 105,000. The unemployment rate held steady at 4.3%.

A jobs beat that spooked markets

The blowout jobs number triggered selloffs in both stocks and bonds. More jobs means more spending power, which means more inflation pressure, which means the Fed might hike rates to cool things down.

Prior months’ jobs data was also revised higher following the report’s release.

“There’s no reason to raise interest rates.”

Trump labeled the prospect of a rate hike as unfair and counterproductive, framing it as a penalty for economic success rather than a prudent response to overheating.

The Fed’s balancing act under new leadership

Kevin Warsh is set to hold his first FOMC meeting as Fed chair on June 16-17, 2026. Job growth at 172,000 against an estimate of 105,000 isn’t a marginal beat. It’s a 64% overshoot.

The unemployment rate at 4.3% is elevated compared to the sub-3.5% lows seen earlier in the decade. So the picture is mixed: strong hiring, but not a labor market so tight that wage-driven inflation is guaranteed to spiral.

What this means for investors

The selloff in both equities and bonds suggests portfolios are built around the assumption that rates stay flat or decline. Higher rates increase borrowing costs for companies, compress equity valuations, and make safer fixed-income instruments more attractive by comparison.

The June FOMC meeting is now the most important date on the economic calendar. Traders should watch not just the rate decision itself, but the statement language and dot plot projections for signals about the rest of 2026.

The spread between the May jobs number and the consensus estimate, a gap of roughly 67,000 jobs, represents one of the larger upside surprises of the year.