U.S. job growth through March was likely far less than initially estimated, fueling concerns that the Federal Reserve is falling further behind the curve to lower interest rates, Bloomberg reports.
Goldman Sachs Group Inc. and Wells Fargo & Co. economists both expect the government’s preliminary benchmark revisions on Wednesday to show payrolls growth in the year through March was at least 600,000 weaker than currently estimated.
While JPMorgan Chase & Co. forecasters see a decline of about 360,000, Goldman Sachs indicates it could be as large as a million.
A downward revision to employment of more than 501,000 would be the largest in 15 years and would suggest the labor market has been cooling for longer—and perhaps more so—than originally believed.
The figures also have the potential of shaping the tone of Fed Chair Jerome Powell’s speech at the end of the week in Jackson Hole, Wyoming. Investors are trying to gain insight as to when and how much the central bank will start lowering interest rates as inflation and the job market cool.
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