Oxford Economics: Fed May Cut Rates Twice This Year to Support Labor Market

Odaily News Oxford Economics stated that the March employment figures in the United States significantly overestimated the strength of the pre-war labor market, as the data also reflected declines in both the labor force and household employment. As the Iran war impacts actual economic activity, employment growth will slow. The war's effect on inflation is immediate, but the negative impacts on consumer spending, business investment, and hiring will become more apparent in the coming months. Oxford Economics' baseline forecast remains that the Federal Reserve will overlook the one-time shock from rising oil prices this year and cut rates twice to guard against any potential future weakness in the labor market. (Jin10)