The recent jobless rate increase in the US to 3.9% has come as a surprise to economists, who had predicted a lower figure. This news was reported by the Labor Department shortly after the Federal Reserve committee decided not to cut interest rates. Despite this setback, Joseph Gaffoglio, president of Mutual of America Capital Management, believes that the slower jobs report will be viewed positively by the Fed.
The Fed has been cautious about cutting interest rates to avoid exacerbating inflation. This approach could lead to continued pressure on the job market in the near future. In March, prices rose by 3.5% compared to the previous year, which is further away from the Fed’s target than at the end of 2021.
A recent CNN poll shows that only 34% of voters approve of President Biden’s handling of the economy, while 29% approve of his approach to inflation. Additionally, many voters perceive former President Trump as being better suited for managing the economy than Biden.
As we approach the 2024 election, there is increasing scrutiny of the Fed and its interest rate policies from both politicians and voters alike. The Hill’s Taylor Giorno provides more information on this topic.
