Data released Friday showed the US economy added 236,000 jobs in March, the smallest increase in more than two years. The analysts of Wells Fargo They point out that this is the kind of jobs report they think the Fed wants to see: job growth slowing in an orderly fashion, labor supply expanding, and wage growth approaching rates that are consistent with the central bank’s 2% inflation target. They expected another 25 basis point rate hike in May, probably the last.
Job growth turns from hot to tepid
“The jobs report may add to the growing list of indicators that suggest the labor market is directionally softening. While the level of many labor market indicators remains impressive, the weaker direction suggests that the FOMC has the future in its sights.” end of hardening cycle.”
“We continue to expect the FOMC to raise the fed funds rate an additional 25 basis points on May 3, as the inflation trend has yet to convincingly decline.”
“With the effects of policy tightening to date starting to filter more clearly into the labor market, it could turn out to be the last hike of this cycle as the FOMC becomes more convinced that the economy is softening enough to keep inflation firmly on a downward path.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
