Carson Group strategist: The latest nonfarm payroll data puts the Federal Reserve in a difficult situation, and last year’s rate cut was a mistake

Gate News message, April 3, Carson Group Chief Macro Strategist Sonu Varghese said that the latest labor data shows that the economy’s new job growth is enough to keep up with population growth. He noted that this will put the Federal Reserve in a more complex situation, making rate cuts meaningless—especially considering the size of the inflation shock that is coming. He added that the inflation problem already existed before the Middle East crisis drove energy prices soaring; in the end, last year’s rate cut appears to have been a mistake.

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