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2026-04-04 00:45:00
Oxford Economics: Fed May Cut Rates Twice This Year to Support Labor Market. Oxford Economics stated that March's overall employment data significantly overestimated the strength of the pre-war labor market, noting declines in both the labor force and household employment. The institute's chief U.S. economist, Nancy van den Horten, predicts that job growth will slow as the war with Iran begins to impact real economic activity. In a report, she noted, "The impact of the war on inflation is immediate, but the negative spillover effects on consumer spending, business investment, and hiring will become more apparent in the coming months." Van den Horten added that Oxford Economics' base case remains that the Fed will ignore the one-off shock of rising oil prices and cut rates twice this year to prevent any future weakness in the labor market.
