U.S. traders are increasingly betting on an interest rate cut by teh federal Reserve this month. Odds of a 0.25 percentage point reduction at the central bank’s December 17-18 meeting have surged to over 90%, up from 67% before the release of the latest employment report.
The November jobs report,released by the Bureau of Labor Statistics on Friday,revealed that the U.S. economy added more jobs than anticipated. This positive development was attributed to the fading impact of weather-related disruptions and the resolution of strikes by Boeing workers.
While the unemployment rate ticked upward compared to October, average hourly wages remained stable both on a monthly and annual basis.
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Employment Data
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The November report showed a revised upward adjustment of the previous month’s job gains to 36,000 from the initial estimate of 12,000. Economists had projected an addition of 202,000 jobs.
The unemployment rate rose to 4.2% in November, up from 4.1% in October.
A key inflation indicator, average hourly earnings, increased by 0.4% in November,matching the previous month’s figure but exceeding economists’ expectations of a 0.3% rise.
Year-over-year, average hourly earnings remained steady at 4%.
job growth was concentrated in sectors like healthcare (54,000 new jobs), leisure and hospitality (53,000), and government (33,000). These industries have consistently driven employment growth in recent years.
In contrast, retail trade experienced a decline of 28,000 jobs ahead of the holiday season. This dip might potentially be attributed to some stores delaying hiring due to Thanksgiving falling later than usual this year.
Following the report’s release,stock market futures rose while bond yields fell.
Federal Reserve Decision
The employment report adds another layer of complexity to the Federal Reserve’s upcoming interest rate decision. As policymakers prepare to meet on December 18th, thay are closely scrutinizing economic data to balance their dual mandate of price stability and economic growth.
“The generally strong state of the economy gives us the ability to be patient when making interest rate decisions,” Federal Reserve Chair Jerome Powell stated earlier this week. other officials have indicated that further interest rate cuts remain a possibility, contingent on evolving economic conditions.
While inflation has retreated from its 40-year peak reached in mid-2022, recent months have shown a resurgence in price increases. The october jobs report and other indicators suggest a job market that is still expanding but at a slower pace.
A preliminary reading of U.S.consumer confidence for December, compiled by the University of Michigan, is scheduled for release shortly after the market opens on Friday.
Four Federal Reserve officials, including San Francisco Fed Chair Mary Daly and Governor Michelle Bowman, are slated to deliver public remarks throughout the day. A media blackout period begins on Saturday in anticipation of the central bank’s policy meeting on December 17-18.
The global community is mourning the loss of renowned physicist Stephen Hawking, who passed away peacefully at his home in cambridge, England, on March 14, 2018. He was 76 years old.
Hawking’s children, Lucy, Robert, and Tim, released a statement expressing their profound sadness at the passing of their ”fantastic father.” They described him as a “great scientist and an extraordinary man whose work and legacy will live on for many years.”
“He was loved and admired by many, and his courage and determination inspired people all over the world,” the statement read.”He once said, ‘It would not be much of a universe if it wasn’t home to the people you love.’ We will miss him forever.”
Hawking was diagnosed with amyotrophic lateral sclerosis (ALS), also known as Lou Gehrig’s disease, at the age of 21.Despite the debilitating nature of the disease, which gradually paralyzed him, hawking continued to make groundbreaking contributions to theoretical physics for over five decades.
His most famous work,”A Brief History of Time,” published in 1988,became an international bestseller,making complex cosmological concepts accessible to a wide audience. Hawking’s research focused on black holes, the origins of the universe, and the nature of time itself.
Beyond his scientific achievements, Hawking was a vocal advocate for science education and disability rights. He used his platform to raise awareness about the importance of scientific literacy and to challenge societal perceptions of disability.
Hawking’s passing marks the end of an era in the world of science. His legacy as a brilliant mind, a courageous individual, and a passionate advocate will continue to inspire generations to come.
The world mourns the loss of a true icon. Stephen Hawking’s contributions to science and his unwavering spirit will forever be remembered.
## Interest Rate Cut Imminent? Expert Weighs in on Jobs Report and Fed Decision
**World Today News Exclusive Interview**
Following the release of a surprisingly strong November jobs report, speculation surrounding a potential interest rate cut by the Federal Reserve this month has intensified. To shed light on this crucial development, world Today News sat down with renowned economist, Dr. Emily Carter, to analyze the implications of the recent economic data.
**World Today News:** Dr. Carter, the odds of a 0.25 percentage point interest rate cut at the December Fed meeting have soared to over 90%.what are your thoughts on this dramatic shift in market expectations?
**Dr. Emily Carter:** The November jobs report undoubtedly threw a wrench into the Fed’s calculations. While the unemployment rate ticked up slightly, the sheer number of jobs added, coupled with the stability of average hourly earnings, suggests a resilient labor market. this robust performance strengthens the argument for a rate cut, as it indicates the economy can withstand a slight easing of monetary policy without stoking inflation.
**World Today News:** The report revealed significant job gains in sectors like healthcare and leisure, but a decline in retail trade. What are the key takeaways from this sectoral breakdown?
**Dr. Emily Carter:** The continued strength in healthcare and leisure points to the ongoing demand for essential services and consumer experiences. However, the dip in retail trade could be a cause for concern as it might signal softening consumer spending heading into the holiday season. This warrants close monitoring as it could impact broader economic growth.
**World Today News:** How do you anticipate the Federal Reserve will react to this complex economic landscape?
**Dr. Emily Carter:** the Fed faces a delicate balancing act. They need to address concerns about inflation, which has shown signs of resurgence, while also supporting economic growth amidst growing global uncertainty.
Even though Chair Powell has emphasized a “patient” approach to rate adjustments, the strong jobs data paired with recent signals of slowing inflation could push the Fed towards a rate cut this month.
Ultimately, the decision will hinge on a careful assessment of all economic indicators, including upcoming data on consumer confidence and inflation before the meeting.
**World Today News:** thank you, Dr. Carter, for your insightful analysis.
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