Zandi: Job growth is flat, and that will drive rate cuts

Group 1 - The current Consumer Price Index (CPI) is at 2.9%, which is above the Federal Reserve's target of 2% [2][3] - Inflation is expected to continue accelerating due to higher tariffs and immigration policies affecting labor markets [3] - The job market is experiencing stagnation, with flat job growth, which may lead to interest rate cuts by the Federal Reserve [4][10] Group 2 - If CPI comes in lower than expected, it could open the door for a 50 basis point rate cut, which the market may react positively to [6][7] - The bond market is closely monitored by the Federal Reserve as it reflects investor sentiment regarding future monetary policy [9] - There is a possibility of six rate cuts priced in by the end of 2026, reflecting concerns about job market weakness and persistent inflation [11][12]