The solid employment report for March further raises the odds that the U.S. economy is headed for a proverbial soft landing. But that lowers the chances that inflation will touch down at the Federal Reserve’s elusive target of 2%.
Most important to investors, the jobs numbers suggest the Fed will raise interest rates one more time in this cycle, at the Federal Open Market Committee’s meeting in early May. That’s subject to change, however, based on coming inflation readings or possible repercussions from the recent bank turmoil.
