Investing.com: Nonfarm payrolls rise by 303,000 in March, surpassing expectations for US economy’s job growth


Investing.com: Nonfarm payrolls rise by 303,000 in March, surpassing expectations for US economy’s job growth

The U.S. economy saw job growth in March that exceeded expectations, indicating that the labor market is still strong. This could potentially give the Federal Reserve more flexibility to delay lowering interest rates until later this year. In March, the economy added 303,000 jobs, surpassing the revised lower number of 270,000 from February. Economists had predicted a reading of 212,000.

Additionally, there was a 0.3% month-on-month increase in wages, in line with expectations and up from a revised 0.2% in January. The unemployment rate also decreased to 3.8% from 3.9% in the previous month, staying below 4% for 26 consecutive months, the longest stretch since the late 1960s.

While the Federal Reserve initially indicated three potential rate cuts this year at its March meeting, there is now speculation that cuts may not happen as soon as June. Chair Jerome Powell has emphasized the importance of gathering more data before committing to a cycle of rate cuts.

Despite the strong economic numbers, Minneapolis Fed President Neel Kashkari expressed skepticism about the necessity of lowering interest rates this year, stating that if inflation remains low, a rate cut may not be needed at all. Overall, the U.S. economy’s performance and the Fed’s cautious approach suggest that interest rates may remain stable for the time being.

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