Federal Reserve Governor Stephen Milan stated that the unexpectedly strong January employment data does not imply policymakers should halt further interest rate reductions. Milan indicated that planned supply-side reforms, such as reduced business regulations, along with an anticipated slowdown in housing inflation, would create room for policymakers to continue lowering the benchmark interest rate. Since joining the Federal Reserve Board in September, Milan has dissented at every policy meeting, advocating for larger rate cuts than other Fed officials were prepared to support.

"There are many reasons I would like to see interest rates come down. While today's jobs data makes me very optimistic about the economic outlook, I believe the expansion of the economy's supply side still provides space for monetary policy to act accordingly," he said in an interview with Fox Business. Traders have reduced their bets on a Fed rate cut in June, with the probability now falling below 50%. Previously, the market viewed June as the most likely timing for the next rate cut.