The Labor Department released its report, showing that the jobless rate increased to 3.9 percent, exceeding economists’ expectations. This came after a Federal Reserve committee decided not to cut interest rates. The slower job growth is seen as positive news for the Fed, as it signals that interest rate hikes are affecting a labor market that has been strong in recent years.
Joseph Gaffoglio, president of Mutual of America Capital Management, stated that the Fed is proceeding cautiously with the timing of any interest rate cuts to ensure that inflation remains under control. This 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. Voters believe that former President Trump would handle the economy better than Biden, seen as the likely Republican nominee in 2024.
As the 2024 election cycle gains momentum, scrutiny of the Fed and its interest rate policies has increased. Taylor Giorno from The Hill has more information on this topic.
