The May jobs report landed like a cold bucket of water on anyone hoping the Federal Reserve would ride to the rescue with rate cuts this summer. The US economy added 172K jobs, roughly double what forecasters had penciled in, and unemployment held steady at 4.3%.
For the labor market, that’s good news. For crypto, it’s the opposite.
The macro picture just got uncomfortable
Here’s the thing about rate-cut narratives: they only work when the economy looks weak enough to justify them. A jobs number that blows past expectations by a factor of two doesn’t exactly scream “economy needs help.”
With unemployment parked at 4.3%, the Fed has essentially zero incentive to loosen monetary policy. In English: cheap money isn’t coming back anytime soon, and risk assets like crypto are paying the price.
