While Trump pulled back on many of the huge tariffs he announced against Canada and Mexico this week, a fresh flurry of levies is set to arrive on April 2. The president believes those measures will bring manufacturing jobs back into the US, but critics fear they’ll pummel the US economy and contribute to scores more layoffs in the months ahead.
Hispanic Americans and people without a high school diploma featured prominently among those who lost their jobs in February, while the share of part-time workers jumped to its highest level for nearly four years.
First American senior economist Sam Williamson said the news suggested the Federal Reserve would likely leave its funds rate unchanged in its next announcement, although it could be compelled to move in the months ahead.
“With the labor market holding steady, a Fed rate cut in March remains unlikely as policymakers stress the need for disinflation or labor market softening for further cuts,” he wrote, “but a June cut remains on the table.”
Williamson highlighted a “silver lining” for homebuyers: a slide in the 10-year yield by over 40 basis points amid that economic volatility, a trend that could put further downward pressure on mortgage rates in 2025.
