US Job Growth Soars in March While Inflation Damps Economic Optimism

The US economy added 303,000 jobs in March, far exceeding expectations and extending the hot job market. The unemployment rate fell to 3.8%.

However, stubbornly high inflation continues to sour Americans' views of the economy, despite strong hiring and low unemployment.

Rising prices, especially for gasoline, groceries, and dining out, serve as constant reminders of inflation even as the pace of increases slows.

The hot March jobs report likely means the Fed will be less inclined to cut interest rates this year, dashing hopes for rate cuts to boost growth.

March wage growth slowed slightly, which could ease some Fed inflation concerns, but the strong jobs market bolsters the argument for Fed patience on rate cuts.