US Payrolls Surprise! What Does It Mean for Fed Rates?
US job growth beat expectations in June for a fourth straight month and the unemployment rate fell, suggesting a resilient labor market despite a slowing economy.
Payrolls rose by 147,000 last month, boosted by a surge in state and local government jobs, according to a Bureau of Labor Statistics report released Thursday, a day early because of the Independence Day holiday. The unemployment rate fell to 4.1%.
Private payrolls rose by just 74,000 in June, the least since October and largely due to health care. The numbers are consistent with a moderation in hiring as employers grapple with President Donald Trump’s erratic trade policies and await congressional approval of his signature tax law. Despite slowing economic activity and rising uncertainty in the first half of the year, businesses have been largely reluctant to cut employees.
The jobs data will also help shape the debate among Federal Reserve officials over when to resume interest rate cuts. Fed Chairman Jerome Powell said there was no need to rush to lower borrowing costs until there was more clarity on the impact of tariffs on inflation. Price pressures have eased so far this year.
Source: (ayu-newsmaker)
