The March jobs report showed an addition of 303,000 jobs to the market, accompanied by an unemployment rate of 3.8%. Citi's Chief US Economist Andrew Hollenhorst joined Yahoo Finance Live to provide insight into the potential implications of this data for future Federal Reserve rate cuts. Hollenhorst acknowledges that the jobs report was stronger than expected, but emphasizes that it does not significantly change the overall landscape. He states that this is "exactly the kind of jobs report" the Federal Reserve aims to see, supporting strong job growth without a corresponding uptick in inflationary pressures that would raise concerns. Hollenhorst notes that recent Federal Reserve rhetoric has pushed a narrative that the "potential" of the US Economy is greater and that job growth is higher than previously anticipated. As a result, he believes this type of robust job report could still keep the Fed "on track" to implement rate cuts. Furthermore, Hollenhorst believes the Fed knows that current interest rates are "restrictive at these levels" and that failing to cut rates could potentially slow the economy in the future. However, he also highlights two major concerns: First, cutting rates too early could risk reigniting inflationary pressures, and second, there are risks to "the employment side," which could see "a quick shift toward layoffs." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith

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