The U.S. economy added jobs at a brisk pace in August, reversing a summer slowdown in hiring, while the unemployment rate held steady. Nonfarm payrolls rose a seasonally adjusted 162,000 for the month while the unemployment rate, as expected, held steady at 4.1%, the Bureau of Labor Statistics reported Friday. Economists surveyed by Dow Jones had been looking for a payrolls increase of 53,000. August's total was the strongest monthly gain since March. "Net, net, the labor market is alive and well and generating thousands of new jobs to help keep economic growth squarely in the plus column," said Chris Rupkey, chief economist at Fwdbonds. The report was consistent with what Federal Reserve officials have called a stable labor market, and likely turns the central bank's focus to next week's reports on consumer and producer prices as the final determinant heading into the interest rate decision in less than two weeks. Stock market futures moved mostly lower after the release while Treasury yields, particularly at the short end where Fed policy has its greatest impact, rose sharply. Following the consensus beat on the report, markets edged toward the possibility of a rate hike for the Fed. Traders were still pricing in about 60% odds of a quarter percentage point increase at the central bank's policy meeting Sept. 15-16, according to the CME Group's FedWatch tool. "An upside surprise in payrolls will likely ramp up concerns about a rate hike, but that outcome is in the hands of next week's inflation numbers," said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management. "If those come in cooler than expected, the Fed will likely feel comfortable discounting potentially inflationary signals coming out of the labor market." President Donald Trump called the August report a "great jobs number" and said the Fed should lower rates, not hike. "The Fed Board, with its great new leader, must get smart - BE PATRIOTS for a change," Trump said in a social media post. "High interest rates put the U.S.A. at a very unfair disadvantage, and I won't allow that to happen!" The president further threatened to cut off trading with countries with which the U.S. has a deficit unless the Fed cuts. The U.S. has a deficit with more than 90 nations. "LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT, which the U.S. Supreme Court, in its ridiculous and very costly Tariff decision, strongly acknowledged 'the President' has an absolute right to do," Trump wrote. Policymakers generally watch the unemployment rate more closely for the health of the labor market, and that has held consistent for the past several years and is actually down 0.2 percentage point from a year ago. There was good news on that front as well, as the jobless level held steady even with a 0.2 percentage point increase in the labor force participation rate, a measure of those either employed or looking for jobs. The household survey, which is used to calculate...
🔥 EXCLUSIVE PARTNER OFFER
SucceBuy 2L 3L 6L 10L 22L 30L Ultrasonic Cleaner Stainless Steel Portable Cleaning Washing Machine Ultrasound Home Appliance
Special Price
💎 Exclusive offer! The product everyone is talking about is now at a special price.
Affiliate link — Commission earned at no extra cost to you
© EcoNews DZ — Global Economic & Financial News
Comments
Post a Comment