However, Bank of America’s Aditya Bhave suggests markets are misreading the Fed’s likely response to oil price increases. In a note released yesterday, BofA’s senior economist noted supply shocks create risks to both sides of the Fed’s dual mandate, with the employment outlook remaining sluggish. The most recent jobs report from the BLS showed nonfarm payroll employment edged down by 92,000 in February, with the unemployment rate at 4.4%.
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