US jobs report cools Fed rate hike bets: Why October CPI and record diesel prices now matter
US jobs report cools October Fed rate hike bets, but sticky CPI and record diesel prices could keep inflation and interest rates in focus.
The US jobs report for September brought disappointing results, altering expectations for the Federal Reserve's upcoming October meeting. The economy only added 29,000 jobs, much less than the 90,000 economists anticipated. The unemployment rate rose to 4.2%. This weaker labor market signals that the Fed has less need to raise interest rates immediately.
Investors were pleased with the report, as it suggests the Fed has less pressure to increase rates right away. The S&P 500 rose on Friday following the news, but the week's overall trend remained flat. This is a stark contrast to the stronger labor market seen in August.
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