White House counts jobs report as a win, though inflation path – and interest rate cuts – far from certain ahead of November

The creation of 175,000 jobs in April by US employers has been termed a “Goldilocks” report by leading economists: Creating enough jobs to keep the labor market humming along healthily, but slowing down enough to signal it might be time for the Federal Reserve to begin cutting interest rates.

The creation of 175,000 jobs in April by US employers has been termed a “Goldilocks” report by leading economists: Creating enough jobs to keep the labor market humming along healthily, but slowing down enough to signal it might be time for the Federal Reserve to begin cutting interest rates. Within the walls of the White House, it was seen the same way, stoking relief among officials, who said the data hewed near the team’s own targets for ideal job creation. “We’re very close to that,” one official told CNN, requesting anonymity to describe private deliberations. The US economy has consistently posted blockbuster jobs growth in recent months, surpassing the expectations of experts and the president himself, who has penned op-eds in the Wall Street Journal predicting the economy would cool to a “stable and steady” level. But that strength created a double-edged sword: When more people have jobs, they can afford to buy more goods and services – driving up demand and, in response, prices. The inflation fueled by that economic growth has left a lasting negative impression on voters who list it among their top concerns going into the November election. While President Joe Biden has talked up economic strength on the trail, multiple donors have been telling the White House and the campaign he needs to tap into the frustration of the electorate – echoing concerns his former chief of staff Ron Klain raised at a private event in recent weeks. The average American may have a job – thanks to the hot labor market – but that’s hardly solace when their grocery bills, rent and car payments have become unmanageable.