Oxford Economics: The Federal Reserve may cut interest rates twice this year to support the labor market

SmartContractAuditor · 2026-04-03T16:50:57+00:00

The Oxford Economics Research Institute pointed out that the March employment data in the United States overestimated market vitality, with declines in both the labor force and household employment. The Iran war will slow down employment growth and have a negative impact on inflation and consumer spending. It is expected that the Federal Reserve will cut interest rates twice to address the upcoming softening of the labor market.

SmartContractAuditor

2026-04-03 16:50:57

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Odaily Planet Daily News: The Oxford Institute of Economic Research said that the U.S. employment figures for March greatly overstate the strength of the pre-war job market because the data also reflect declines in both the labor force and household employment numbers. As the Iran war affects actual economic activity, employment growth will slow down. The war’s impact on inflation is immediate, but its negative effects on consumer spending, business investment, and hiring will become more clearly apparent over the next few months. The Oxford Institute of Economic Research’s baseline forecast remains that the Federal Reserve will ignore a one-time shock from the rise in oil prices this year and cut rates twice to guard against any potential weakening in the labor market in the future. (Jin10)

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