Fed Holds Rates Frozen as Housing Market Chokes and Layoffs Spread Like Wildfire
The Federal Reserve just hit pause on rate changes—again. Meanwhile, the housing market’s gasping for air, and pink slips are multiplying faster than meme coins in a bull run.
### The Fed’s Waiting Game
No cuts, no hikes—just another round of monetary thumb-twiddling. Jerome Powell’s crew seems content watching the economy play chicken with recession.
### Housing Market Goes Ice Cold
Forget ‘location, location, location.’ The new mantra? ‘Stagnation, stagnation, stagnation.’ Inventory’s piling up like unread whitepapers in a VC’s inbox.
### Layoffs: The Domino Effect
Tech started it, now Main Street’s catching the knife. HR departments are working overtime—just not how employees hoped.
Bottom line: The ‘soft landing’ narrative’s looking shakier than a shitcoin’s tokenomics. But hey—at least the bankers still get their bonuses.
Source: LSEG
The data tends to MOVE around during school breaks and holidays, but this is clearly more than just noise. It also came during the exact window the government used to collect employment data for June’s nonfarm payroll report, so the stakes were higher.
Fed holds rate steady while housing stalls and layoffs widen
The report came out one day earlier than usual due to the Juneteenth National Independence Day holiday. At the same time, Federal Reserve officials were wrapping up their two-day meeting, with plans to hold interest rates in place at the 4.25% to 4.50% range.
That’s the level it’s been at since December, and there was no sign of a cut. Officials were watching how tariffs from President Donald Trump’s policies are playing out, and monitoring the global fallout from the Israel-Iran conflict. So far, the price hikes from tariffs haven’t pushed up consumer prices much, but the broader impact is still being measured.
Job losses are hitting several sectors at once. In the previous week, layoffs were reported in transportation, warehousing, construction, manufacturing, accommodation, food services, healthcare, agriculture, retail, wholesale trade, admin, arts, entertainment, and professional services.
Minnesota saw a surge as non-teaching school workers filed due to summer break. Claims also ROSE in Pennsylvania and Oregon. On the other hand, Illinois, California, and Georgia saw declines in new filings before seasonal adjustments.
The hiring side of the economy still looks weak. Nonfarm payrolls added 139,000 jobs in May, compared to 193,000 in the same month last year. Employers are not rushing to expand staff in this kind of economic environment. Data expected next week, covering people who stayed on benefits beyond their first week, will provide more clues about how many recently unemployed workers are finding jobs.
The labor market is just one piece of the slowdown. The Census Bureau reported that building permits for future single-family home construction fell 2.7% in May, down to an annual rate of 898,000 units, the lowest since April 2023. Builders are pulling back as mortgage rates stay high, keeping potential buyers out of the market. That’s caused inventory to pile up to levels last seen in late 2007, which means fewer incentives to break ground on new homes.
Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites
