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April Inflation-Free Jobs Surge Plays to Fed Narrative by Investing.com



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Investing.com – The US economy created more jobs than expected in April, while wage growth remained stable and strengthened its belief that the economy is still on the rise without creating unwanted inflationary pressures.

(NFP) increased by 236,000 in March, shattered consensus expectations to 181,000.

Unexpectedly fell to 3.6%. It was the lowest level in December 1969 when it was 3.5%.

Analysts said the figures showed that the Federal Reserve refused to consider reducing interest rates by evidence that the economy was cooling down in the first quarter.

"Political implications are that the market has gone ahead of itself on pricing in a price reduction," Joseph Brusuelas, chief economist at consulting firm RSM US LLP.

"It's now out of the table because of the strong fundamentals underlining the April job settlement. (Fed Mayor Jerome) Powell got it right: not the case for price increases or cuts," he added.

grew only 3.2% year on year, unchanged from March, and short of a consensus forecast of 3.3%. The Fed monitors this component of the data for signs of upward pressure on inflation.

Markets had expected a price supplement before the turn of the year until the Fed's political decision earlier this week. Powell's opposition emphasizes that politicians were comfortable with prices at their current level, forcing markets to reconsider. They now see the possibility of a December reduction of less than 50%.

"Solid growth dynamics have been neutralized with poorer inflation," said Lena Komileva, economics economist in London. "Although the growth cycle has peaked, there is no evidence of (a) deceleration that can lead the economy to a recession."

Komileva said the report was "a blessing for stocks," to the extent that further expansion of what is already the longest growth period in recent history has been accomplished.

US futures expanded winnings after the release by up to 0.5%, having been up 0.4% ahead of the report.

The one who measures the greenback against a basket of large currencies, vacated before mating gains, is slightly higher at 97.59, compared to Fusion Media will remind you that the data on this website is not necessarily real-time position . The benchmark portfolio was slightly changed to 2.56%.

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