Fed officials have made it clear that future rate cuts will be predicated on labor market weakness. This morning’s release of a surprisingly strong April employment report suggests the wait could be a little longer. U.S. businesses added +177k jobs to company payrolls last month, above the +138k forecast. A -58k downward revision to the previous two months takes some of shine off the gain, but overall, the labor market seems to be holding up quite well.

Notable job increases were found in healthcare and social assistance ( +58k), leisure and hospitality (+24k) and business and professional services (+17k). A +29k rise in transportation and warehousing jobs, along with a +6k gain in wholesale trade workers supports the idea that businesses rushed to frontload purchases before tariffs kicked in.

Read the full article

Read more Economic Commentary