US employment gains expected in March; jobless rate seen falling to 3.7%

The Fed last month raised its policy interest rate by 25 basis points, the first hike in more than three years.

U.S. job growth likely continued at a brisk clip in March, with the unemployment rate falling to a new two-year low of 3.7% and wages re-accelerating, which would position the Federal Reserve to raise interest rates by a hefty 50 basis points in May.

The Labor Department's closely watched employment report on Friday would underscore solid momentum in the economy as it confronts rising headwinds from inflation, tighter monetary policy as well as Russia's war against Ukraine, which is further straining global supply chains and adding to price pressures.

The Fed last month raised its policy interest rate by 25 basis points,