No-Inflation Jobs in April Play at the Fed By Investing.com

Investing.com – The US economy has created more jobs than expected in April, while wage growth has remained steady, reinforcing the belief that the economy is still on the rise path without creating unjustified inflationary pressures.

(NFP) increased by 236,000 in March, exceeding consensus expectations of 181,000.

The unexpected drop to 3.6%. It was its lowest level in December 1969, while it stood at 3.5%.

Analysts said the numbers justified the Federal Reserve 's refusal to consider lowering interest rates after signs of a slowing economy in the first quarter.

"The political implications are that the market has moved up in price by cutting rates," said Joseph Brusuelas, chief economist at RSM US LLP.

"This is now off the table because of the solid fundamentals that underlie the April job estimates. (Fed Chairman Jerome) Powell understands that there is no reason to raise or cut rates, "he added.

grew only 3.2% on an annualized basis, unchanged from March and below the consensus forecast of 3.3%. The Fed is monitoring this component of the data looking for signs of upward pressure on inflation.

Markets expected a rate cut before the end of the year until the Fed 's decision earlier this week. Powell's resistance, pointing out that policymakers were comfortable with rates at their current level, forced the markets to re-evaluate themselves. They are now seeing the possibility of a December rate cut to less than 50%.

"Strong growth momentum has been neutralized by controlled inflation," said Lena Komileva, chief economist in London (g +). "Although the growth cycle has reached its peak, there is no sign of (a) deceleration that could lead the economy to a recession."

Komileva said the report was "a boon for the shares", as it suggests an additional extension of what is already the longest period of growth in recent history.

US futures contracts continued their growth after publication with a 0.5% increase after a 0.4% increase over the report.

The, which measures the greenback against a basket of major currencies, sways before reducing its gains, trading slightly higher at 97.59, up from 97.73 before publication.

The benchmark changed little at 2.56%.