U.S. Economy Shows Strength Despite Tariffs, Fed Rate Cut Unlikely

Economist David Kohl from Swiss Bank Julius Baer has highlighted that the U.S. economy is showing little sign of weakness. Following the release of the April non-farm payrolls report, Kohl noted that the U.S.'s volatile and restrictive economic policies, including the imposition of high tariffs, have not yet had the expected negative impact on the labor market data. He pointed out that better-than-expected job additions and a low unemployment rate have driven sustained strong growth in private consumption.

Kohl further emphasized that the data is very robust, and it is expected that the Federal Reserve will not cut interest rates this week. He suggested that the Fed may overlook negative survey indicators and take action only when economic data shows clear signs of weakness.