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

MarsBitNews · 2026-04-04T01:59:25+00:00

The Oxford Economics Institute pointed out that the employment figures in the United States for March are overestimated, and the actual employment situation has been affected by a decline in labor and household employment numbers. The Iran war will slow down employment growth, negatively impacting inflation as well as future consumer spending, business investment, and hiring. It is predicted that the Federal Reserve will ignore the rise in oil prices and is expected to cut interest rates twice to address potential weakness in the labor market.

MarsBitNews

2026-04-04 01:59:25

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Mars Finance reported that on April 4, the Oxford Economics Institute said that the U.S. March employment statistics greatly overestimated the strength of the pre-war job market, because the data also reflects declines in both the labor force and the number of people employed in households. As the Iran war affects real economic activity, employment growth will slow. The war’s impact on inflation is immediate, but its negative effects on consumer spending, business investment, and hiring will become more evident over the next few months. The Oxford Economics Institute’s baseline forecast still remains that the Federal Reserve will disregard the one-off shock from the rise in oil prices this year and cut rates twice to guard against any potential weakness that may emerge in the labor market in the future. (Jin 10)

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