In April, fewer people were hired in the US, even though the economy added almost 200,000 jobs. Investors were glad to see the April numbers. They hope that this will help to slow down the job market and get things ready for when the Federal Reserve cuts interest rates.
All of the big markets went up when interest rates went up. Right now, interest rates in the US are at an all-time high. More than 300,000 jobs were added in the US in March, which is more than the 190,000 jobs that experts thought would be added. It has been below 4%, and even though it has changed a few percentage points, it’s stayed pretty much the same.
Even though the Federal Reserve has kept rates the same, job markets are still growing steadily. This week, they said that inflation was still high and that they wouldn’t lower rates until they were more sure that prices would rise to the two percent level they wanted. The head of the Federal Reserve, Jerome Powell, said that it’s taking longer than planned but that they still think inflation will go down this year.
The head economist at TruStage, Steve Rick, spoke out. He said, “Even though missing expectations and pointing to an economic slowdown, the labor market has still maintained a pattern of growth, and consumers can be cautiously optimistic that the Fed will be able to lower inflation while also avoiding a recession.”
Economists say that people should be positive about the economy slowing down and that the Federal Reserve will be able to lower interest rates without causing a recession.
