By Ann Sapphir
(Reuters) – Federal reserve decision -makers on the alert of possible cracks on the job market while companies adapt to the erratic trade policy of President Donald Trump have been reassured on Friday that so far, there is little weakness, and no reason to rush on the rate reductions.
American employers added 177,000 jobs more than scheduled in April, the Labor Department reported, and the unemployment rate was unchanged at 4.2%. Both are signs that the labor market remains in balance for a month when Trump announced the highest prices of a century, sending downward shares and convulseing the bond market before the administration was largely installed from these levies until July.
With the labor market and inflation always exceeding their target of 2%, Fed decision -makers should stick to their plan to leave short -term borrowing costs where they are waiting to see how prices and economic growth. Time income increased by 3.8% compared to the previous year, the job report showed, the same rate as in March and in the range of what the Fed considers as coherent with its inflation objective of 2%.
“In the here and now, solid data on the job market provide the Fed the possibility of patience,” said Lindsay Rosner, responsible for multiserctor fixed income securities in the management of active ingredients of Goldman Sachs. “The prospective prospects having deteriorated, however, today’s data feel somewhat back and that the risks remain that a weakened economy could see the Fed resume its softening cycle later in the year.”
Merchants are now betting that the Fed will wait until July to start reducing interest rates; Earlier, they had thought that a move in June was more likely. And they now see the Fed offering a total of three interest rate drops in quarters by the end of the year, one less than before.
Shortly after the report, Trump reiterated his own Call for Fed to reduce rates.
Nourished political decision -makers, who say that it will be the needs of the economy, not the desires of the president who will dictate their movements, want to be sure that inflation will not repeat. Prices that should increase higher prices, at least temporarily, they have pointed out that they will maintain the policy rate in the current range of 4.25% to 4.50% to maintain downward pressure on inflation, as long as the labor market is not collapsing.
And so far, this is not the case, despite the fact of flowing the feeling of consumers and business on fears that prices are used for the growth of the United States.
In April, the net number of people joining the job market exceeded the people who have left the most since August 2023, a sign of resilience.
