Fed seen skipping Oct rate hike as job market cools
NEW YORK: Federal Reserve policymakers on Friday got more reason to wait before raising interest rates again to fight inflation, after government data showed job gains are slowing and the unemployment rate ticked up. It was the last broad read of the US labour market before November elections that will determine whether President Donald Trump’s Republican party keeps control of both houses of…
Federal Reserve officials are reportedly considering postponing an interest rate hike in October, as government statistics revealed a deceleration in job growth and a rise in the unemployment rate. This comes on the cusp of the November elections, which will determine if President Donald Trump's Republican party retains control of the Senate.
The rising cost of living, driven by inflation and higher borrowing costs, has led to voter dissatisfaction with the incumbent administration's economic policies, despite robust overall economic growth and a steady labor market. According to the latest data, US employers only added 29,000 jobs in September, falling short of the 90,000 economists anticipated.
August's job gains were also revised downwards. The September unemployment rate rose to 4.2percent, up from 4.1percent. Wage growth also slowed. The Fed increased short-term borrowing costs by 0.25 percent last month to help bring inflation back under control, aiming for a 2percent target. Fed policymakers have indicated they may deliver at least one more rate hike by year's end if the ongoing Iran war and other factors fueling inflation persist, provided the labor market remains stable.
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