April Jobs Report Not Likely to Spur Fed Rate Move

WASHINGTON — April’s expected rebound in U.S. job creation isn’t likely to unnerve Federal Reserve Board officials, who are wary the economy may be growing too fast.

Friday’s employment report is expected to show the economy added 261,000 jobs last month after losing 36,000 jobs in March, according to a Bloomberg News survey. While that would be a big jump, it would put average job growth for the two months below the average of the previous two months.

“Investors would take that in stride because it’s showing some moderation,” said Stuart Hoffman, chief economist at PNC Bank Corp. “It means the Fed will not make a move in the foreseeable future” to brake the economy by pushing the overnight bank lending rate higher.

U.S. central bankers have left borrowing costs unchanged for more than a year, watching for signs inflation could be poised to accelerate as the economy motored along, pushing the unemployment rate to its lowest point in a generation.

Fed policymakers meet again May 19 to discuss interest rate policy. They’re expected to sit tight once more, and an April employment report in line with expectations would suggest that job growth is slowing.