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US labor market weakens – interest rate reduction more likely
The labor market data of the United States are an important indicator of the interest decision of the central bank Fed. What the recent figures should mean for employment.
The US economy once again created fewer jobs than expected. Outside of agriculture, 22,000 jobs were added, as the Ministry of Labor in Washington announced. Economists had expected an average of 75,000 new jobs. The employment in the two previous months was also revised by a total of 21,000 jobs.
The weak employment development was primarily triggered by the state sector. 16,000 jobs were broken down here. 38,000 jobs have been created in the private sector. In the month comparison, the unemployment rate increased by 0.1 percentage points to 4.3 percent. On average, economists had expected this increase.
How does the central bank react?
According to experts, a key interest from the US Federal Reserve Fed is now even more likely. “This likes the last doubts that the US Federal Reserve will reduce its key interest on September 17,” commented Elmar Völker, economist at LBBW. This applies regardless of a successive increasing inflation pressure. “In our opinion, however, the latter is likely to prevent the central bankers from being lowered by more than 0.25 percentage points.” The Fed will announce its interest decision on September 17th.
Trump released the head of the labor market statistics
The labor market report is currently particularly important. The employment structure was already behind the expectations in July. In addition, the two previous months had been revised very strongly. Trump then fired the head of the labor market statistics, Erika Mcentarfer. He accused her of having fake numbers out of political motivation and wanting to harm him.
dpa
Source: Stern
