White House counts jobs report as a win, though inflation path – and interest rate cuts

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White House counts jobs report as a win, though inflation path – and interest rate cuts
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The creation of 175,000 jobs in April by US employers has been termed a “Goldilocks” report by leading economists: Creating enough jobs to keep the labor market humming along healthily, but slowing down enough to signal it might be time for the Federal Reserve to begin cutting interest rates.

Within the walls of the White House, it was seen the same way, stoking relief among officials, who said the data hewed near the team’s own targets for ideal job creation. “We’re very close to that,” one official told CNN, requesting anonymity to describe private deliberations.

” The Federal Reserve has been fighting inflation by raising interest rates – driving up costs for borrowing to buy a major purchase like a house or car, even as the costs for the underlying house and car have risen considerably, too. In the wake of the latest jobs report, many market participants are now expecting the Federal Reserve to begin cutting interest rates in September, potentially easing a source of consternation for voters.

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