Part 6/11:
Adding to the gloom, recent employment data show the economy added only 62,000 jobs in April, the lowest growth since July 2024 and a significant drop from March’s 147,000 jobs. While some sectors like leisure, hospitality, and construction showed gains, overall hiring is sluggish, hinting at a weakening labor market.
The Federal Reserve's challenge here is the classic trade-off: higher interest rates could further impair job creation, yet lower rates risk fueling inflation. This fine line leaves policymakers in a highly uncertain position.