The April Jobs Report and CPI Reading Just Hit Consumers With a Double Whammy. Will the Fed Have to Rethink Its Position Regarding Interest Rates?

April jobs growth came in above expectations, but the composition was mixed with not all gains concentrated in sectors signaling broad economic strength. Average hourly earnings also rose more slowly than expected, which may ease some inflation pressure and influence Fed policy expectations. The report is likely to have market-wide implications given its relevance to growth, wage inflation, and interest-rate outlook.

Analysis

April jobs growth came in above expectations, but the composition was mixed with not all gains concentrated in sectors signaling broad economic strength. Average hourly earnings also rose more slowly than expected, which may ease some inflation pressure and influence Fed policy expectations. The report is likely to have market-wide implications given its relevance to growth, wage inflation, and interest-rate outlook.