The US economy surprised analysts in March by creating 303,000 jobs, exceeding expectations and indicating a strong labor market. This growth could potentially delay the Federal Reserve’s decision to cut interest rates until the end of the year. Additionally, average hourly wages grew by 0.3% compared to the previous month, while the unemployment rate fell to 3.8%.
The manufacturing sector also showed signs of growth in recent months, further strengthening the economy and raising doubts about an early rate cut. Some officials are suggesting a rate cut in June, but others are emphasizing the need for thorough evaluation of incoming macro data before making any changes to interest rates.
Doubts about the necessity of rate cuts this year have been reinforced by statements from officials, indicating that a reduction in interest rates may not be required if inflation remains stable. Despite this, some sectors such as healthcare, public administration, construction, and leisure and hospitality continue to show significant job growth in March.
