Chicago Fed President Goolsbee and El-Erian seek more data to confirm inflation, while April's US jobs data shows a slower job creation pace, indicating a cooling labor market.

Chicago Fed President Austan Goolsbee and economist Mohamed El-Erian both indicate a preference for more data to confirm inflation is on track to the Federal Reserve's 2% target before considering interest rate cuts. April's US jobs data, showing a slower pace of job creation, is seen as a "Goldilocks" report that should please the Fed and markets. With a 175,000 increase in nonfarm payrolls and the unemployment rate rising to 3.9%, the report suggests a cooling labor market, providing relief for the Fed as it aims for a soft US economic landing.

May 03, 2024
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