News Analysis
According to a new report from the federal government’s Bureau of Labor Statistics last week, the U.S. economy added 175,000 jobs for the month of April while the unemployment rate rose slightly to 3.9 percent. The new reported job growth was considered a “miss” in that it came in below expectations, and for the first time in months, the media did not declare the jobs report to be “a blowout” or “strong.” Instead, the official narrative seems to be that the “slowing economy” will bring down consumer price index (CPI) inflation, and thus the Federal Reserve will soon force interest rates back down and bring about the fabled “soft landing.” Not surprisingly, then, the lackluster jobs report led to a rally in stocks, as Wall Street anticipates a Fed rate cut.
