US Unemployment Steady at 4.3%, Keeping Fed Rate Hikes on the Table

The US unemployment rate remained at 4.3% in May 2026, above the Fed's target range of 4.0%–4.1% but not tight enough to signal a policy shift. Combined with inflation still running above the central bank's 2% target, this reading sustains expectations for further rate increases. Markets are pricing in additional hikes over coming quarters, strengthening the dollar globally and pressuring Asian currencies.