The jobless rate increased to 3.9 percent, exceeding economists’ expectations. The Labor Department’s report was released shortly after a Federal Reserve committee decided not to cut interest rates.
Joseph Gaffoglio, president of Mutual of America Capital Management, stated that the slower job growth is positive news for the Federal Reserve. This signals that interest rate hikes are affecting a labor market that has been strong in recent years. The Fed is proceeding cautiously with the timing of any interest rate cuts to ensure that inflation remains under control, which may continue to put pressure on the job market in the future.
Consumer prices rose 3.5 percent from a year ago in March, moving further away from the Fed’s target compared to the end of last year. At that time, the central bank had signaled potential rate cuts in 2024. A recent CNN poll showed that only 34 percent of voters approve of President Biden’s handling of the economy, with even fewer, 29 percent, approving of his approach to inflation. Voters believe that former President Trump, seen as the likely Republican nominee in 2024, would handle the economy better than Biden.
As the 2024 election cycle gains momentum, scrutiny of the Fed and its interest rate policies has increased. The Hill’s Taylor Giorno has more information on this topic.