The US Department of Labor’s Bureau of Statistics reported an increase of 175,000 jobs last month. This is favorable data for the Fed, but we still have to see what happens with rates.
He job growth in the United States slowed more than expected in April and annual wage gains cooledbut it is probably too early to expect the Federal Reserve (Fed) start cutting interest rates before September, as the labor market remains quite tight.
The non-farm payrolls increased in 175,000 jobs last month, reported this Friday the Bureau of Statistics of the Department of Labor. March data was revised upward to show a payroll increase of 315,000 jobs, instead of the previously reported 303,000.
The unemployment rate continues to decelerate
Economists polled by Reuters had forecast an increase in payrolls of 243,000. Estimates ranged from 150,000 to 280,000. The unemployment rate rose from 3.8% to 3.9% and remained below 4% for the twenty-seventh consecutive month.
Wages rose 3.9% in the 12 months to April, after rising 4.1% in March. A wage growth between 3.0% and 3.5% is considered compatible with the 2% inflation target of the Federal Reserve.
He us central bank It kept its overnight reference interest rate unchanged on Wednesday in the current range of 5.25%-5.50%, where it has been since July.
Investor expectations for the rate
The Financial markets continue to wait for the central bank to begin its monetary easing cycle in September. A minority of economists believe the window is closing. Since March 2022, the Federal Reserve has increased its official interest rate by 525 basis points.
After learning last week that Economic growth slowed considerably in the first quarterthe moderation in payrolls could stoke fears that the economy would quickly lose momentum in the second quarter.
But decline in the Gross Domestic Product In the last quarter it was largely due to the increase in imports, reflecting strong domestic demand. (Reporting by Lucia Mutikani; Edited in Spanish by Manuel Farías)
Source: Ambito
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