Why Strong Hiring Matters Less to the Fed’s Rate-Cut Outlook

Strong March hiring should keep the Federal Reserve comfortable with its wait-and-see stance on interest rates, putting the focus on inflation data to clarify whether and when it will cut rates. For most of 2022, senior Fed officials saw strong economic activity and hiring as a headwind to bringing down inflation. Fed Chair Jerome Powell, however, has in recent months signaled that he no longer regards strong hiring as something to fear.