US Watch April Jobs Review

The April US jobs report featured a 115k payroll increase and a steady 4.3% unemployment rate, described by BofA as 'solid but not hot'. The report reinforces a Fed hold, with the firm pushing expected rate cuts out to the second half of 2027.

Key Takeaways

• 1.The April jobs report showed solid growth (115k payrolls) but is not indicative of a 'hot' labor market, reducing the risk of further rate hikes.
• 2.The unemployment rate remained steady at 4.3%, despite some underlying weakness in household survey details and participation rates.
• 3.BofA has pushed its forecast for Federal Reserve rate cuts out to 2H 2027 due to persistent inflation and labor market resilience.

Table of Contents

• Solid but not a hot labor market
• What did we like about this print?
• What did we not like about this print?
• Wages not indicative of an inflationary labor market
• Fed: no cuts this year
• Market response: Rates and FX
• Disclosures
• Research Analysts

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