In April, U.S. job growth decelerated more than anticipated, and the annual wage increase dipped below 4.0% for the first time in nearly three years.
However, it may be premature to anticipate the Federal Reserve initiating interest rate cuts before September, given the relatively tight labor market conditions.
According to the Labor Department’s widely observed employment report released on Friday, the unemployment rate edged up to 3.9% from March’s 3.8%, attributed to an expanding labor supply.
Earlier apprehensions were fueled by reports of a notable slowdown in economic growth and a surge in inflation in the first quarter.
Financial markets adjusted their expectations, increasing the likelihood of a rate cut in September and envisioning the Fed implementing two interest rate reductions this year, rather than just one, in light of the latest data.
