Analysis: Risks in the U.S. Labor Market Remain High

Scott Helfstein, Chief Investment Strategist at Global X, stated that although the employment report for March exceeded expectations, “the risks in the labor market remain high, and the rise in oil prices due to the conflict in Iran could pose additional obstacles in the coming months.” Helfstein believes that the better-than-expected job growth in March may indicate that the Federal Reserve will maintain interest rates at current levels in its upcoming meeting later this month. However, he added, “We still believe that interest rates may be too high, and this is becoming increasingly evident in the mortgage market.”