WASHINGTON (Reuters) - The latest U.S. nonfarm payroll report delivered a positive surprise to markets amid ongoing economic recovery, with June figures showing 147,000 new jobs added — significantly exceeding the market consensus of 106,000. The May data was also revised upward to 144,000, pushing the unemployment rate down unexpectedly to 4.1% , below the projected 4.3%.

These robust employment numbers validate Federal Reserve Chair Jerome Powell's cautious approach to interest rate hikes and strongly support the central bank's decision to maintain current rates. The data comes as President Donald Trump escalated his attacks on Powell, calling the Fed chair an "idiot" and "loser" on his Truth Social platform while demanding rates be slashed to 1% or lower .

Policy Divide Widens

The economic report highlights a growing divergence between the White House and the independent central bank. Former Vice President Mike Pence joined the criticism, calling the current federal funds rate range of 4.25%-4.5% a "dereliction" of monetary policy duty.

Market participants remain skeptical of Trump's aggressive rate-cut demands, especially with annual inflation still running at 2.4% — above the Fed's 2% target. Analysts warn inflationary pressures may persist as Trump's proposed tariffs and consumption taxes have yet to fully take effect.

Fed's Independence Tested

According to Investment Insider monitoring tools, market expectations for a July rate cut have now fallen to near zero . Financial experts suggest that despite increasing political pressure, the Fed will likely maintain its current policy path as it continues monitoring economic indicators and inflation trends.

The strong June jobs report has not only boosted market confidence in the economic outlook but also provided the Fed with substantial justification for its monetary policy decisions. While the Trump administration seeks to influence policy through potential Fed leadership changes, the central bank's independence appears to remain a critical safeguard for economic stability amid improving fundamentals.