ECONOMIC WEEK AHEAD: May 5–9

US employers are confounding the naysayers–and complicating the Federal Reserve's decision this week. It's no secret that President Donald Trump wants the Federal Open Market Committee to cut interest rates at its May 6-7 meeting. Yet the economy isn't cooperating, as companies added a robust 177,000 jobs in April (chart). US average hourly earnings, meanwhile, are up 3.8% over the past 12 months. All this means the Fed is in no hurry to cut the federal funds rate. 

In an April 16 speech, Fed Chair Jerome Powell reiterated that the Fed is "always focused on the dual mandate goals" of maximum employment and stable prices. Friday's jobs data probably did little to change Powell's sense that "despite heightened uncertainty and downside risks, the US economy is still in a solid position." Or that the labor market is "at or near maximum employment" while inflation "is running a bit above our 2% objective."