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

Economic Data Summary - The U.S. economy added 130,000 jobs in January, significantly exceeding expectations of 70,000 and nearly tripling December's revised figure of 48,000 [1] - The unemployment rate fell from 4.4% to 4.3%, while wage growth accelerated by 0.4% month-over-month and 3.7% year-over-year [2] - Job growth for the entirety of 2025 was revised down to an average of 15,000 per month, totaling 181,000, marking the weakest year outside of a recession since 2003 [3] Market Reactions - Following the strong labor data, market expectations for interest rate cuts were trimmed, with the probability of a 25-basis-point rate cut in June dropping from approximately 75% to 57% [6] - The likelihood of two rate cuts by year-end also softened, with Fed futures indicating a small chance that rates remain unchanged throughout 2026 [7] Political Commentary - President Trump emphasized the positive job numbers while downplaying the significant downward revisions, advocating for lower interest rates based on the strong economic performance [4] - Trump's assertion that strong economic data justifies lower rates contrasts with traditional monetary policy views, which typically see robust labor markets as reducing the need for rate cuts [5]