Mohamed A. El-Erian , Columnist

Signs That First-Quarter Weakness Won't Last

If the April jobs report marks a trend, the Fed could raise interest rates as early as June.

May 5, 2017 at 1:27 PM UTC

Mohamed A. El-Erian is a Bloomberg Opinion columnist. A former chief executive officer of Pimco, he is president of Queens’ College, Cambridge; chief economic adviser at Allianz SE; and chair of Gramercy Fund Management. He is author of “The Only Game in Town.”

The April jobs report could mark a rosy trend.
Photographer: Robyn Beck/Agence France-Presse/Getty Images

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Friday’s solid jobs report is consistent with the view that the soft economic patch signaled by first-quarter data, including disappointing GDP growth, is likely to be both temporary and reversible. It also suggests that the Federal Reserve may be tempted to hike rates again as early as June.

Friday’s jobs report assumed greater importance because of concerns that recent data suggested that consumption, the longtime engine of the U.S. economic expansion, was facing headwinds. Such concerns were alleviated by data showing that two major drivers of consumer spending -- wages and job creation -- remain on track.