Institution: March Non-farm Payrolls Exceed Expectations, Showing Resilience in the US Employment Market, with Inflation Currently Being the Core Variable of Fed Monetary Policy

BlockBeats News, April 4th: Huatai Securities believes that the stronger-than-expected rebound in March non-farm payrolls indicates the resilience of the U.S. labor market. However, amidst the conflict in the Middle East, the impact of high oil prices on inflation expectations is more critical for Fed monetary policy.

The recent escalation of the Middle East conflict has caused a surge in oil prices and inflation expectations due to the blockade of the Strait of Hormuz, creating an oil supply gap. Inflation is currently a key variable in Fed monetary policy.

The Fed's dual mandate of employment and inflation gives it some room for maneuver, avoiding rate hikes to combat inflation. With inflation expectations rising, even if the Fed does not raise rates, the Treasury yield curve may shift upward, leading to a substantial tightening in practical terms. (FXStreet)