In March, US job growth exceeded expectations with a 228,000 increase in nonfarm payrolls, indicating labor market resilience. However, the upbeat report came amidst President Trump's looming tariffs, which overshadowed potential positive market reactions. As stocks continued declining due to tariff uncertainties and retaliatory actions from China, Wall Street analysts expressed worries about a pending recession, forecasting rising unemployment and inflation. This complex situation could leave the Federal Reserve with tough choices between lowering rates to support the economy or maintaining high rates to combat inflation, as both Trump and Powell appear reluctant to immediately intervene in the market slump.
Many Wall Street economists now say the US risks a recession this year, including projections for higher unemployment and inflation.
March's solid nonfarm payroll gains suggest neither President Donald Trump nor Fed Chair Jerome Powell will be in a hurry to offer support for the stock market after this week's sharp, tariff-driven selloff.
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