Mitch Roschelle, founding partner of Macro Trends Advisors LLC, warned on Sunday that while many economists and analysts thought the April jobs report was positive, the US economy was still in a "shaky" state.

Data released on Friday showed that the US economy recorded solid job growth in April, suggesting that the labour market remained strong despite rising interest rates, soaring inflation, worsening labour shortages and fears of an economic slowdown.

In its monthly salary report released on Friday, the Labor Department said employers added 428000 jobs in April, surpassing the 391000 jobs predicted by Refinitiv economists. This marks the 12th month in a row that employment growth exceeded 400000. Meanwhile, the unemployment rate held steady at 3.6%, the lowest level since February 2020.

Mitch Roschelle acknowledged that it had added more than 400000 jobs and that "the unemployment rate is falling", but noted"one of the reasons for the decline in the unemployment rate is the decline in our labor force participation rate." it is actually the first decline in three months, which means that fewer and fewer people are entering the labor market..

Roschelle referred to data from the Job Vacancy and Labor Mobility Survey (JOLTS) released on Tuesday, which showed that the number of job openings in the US reached a record 11.5 million in March. Roschelle said:

So, for some reason, we have a distorted labor market where there are job openings, and we can't find the right people for them, and when you're not really fully employed, we don't, you really don't have that strong economy, which means we may not be able to weather this inflationary storm as we hope.

Roschelle also pointed to labour department data, which showed on Friday that average hourly wages rose 5.5 per cent in March from a year earlier, down slightly from 5.6 per cent the previous month. The figures come amid a surge in inflation, which hit a 40-year high in March.

Last month, the Labor Department said the consumer price index (CPI), which measures a range of goods, including gasoline, health care, groceries and rents, rose 8.5 per cent in March from a year earlier, the fastest pace since December 1981. The inflation rate reached 8.9%. Since February, prices have risen 1.2% in a month, the biggest monthly increase since 2005.Inflation figures for April will be released on Wednesday.

Roschelle argued on Sunday:

I think the Fed denies that we have an inflation problem and says it is only temporary for too long.

In terms of money printing, the Federal casting and Printing Bureau in Washington, USA, printed trillions of dollars to help us through the COVID-19 epidemic crisis, but they late admitted that we had to stop the money printing process.

Then he pointed out the factors contributing to inflation in terms of fiscal policy. Roschelle said:

I think we are continuing to stimulate demand in the economy, and the recent nearly $2 trillion bailout bill is unnecessary. It just continues to inject money into the economy, and quite simply, too much money chasing too few things is the cause of inflation.

"We still haven't solved the supply-side problem of the economy, but it's the only way to solve the problem."he continued, pointing out that"This is really not the job of the Fed.So Congress needs to act "to try to find ways to repair and stimulate the supply side of the economy and stop stimulating demand."