The recent US job market data put a new obstacle to any attempt by the US Federal Reserve to start cutting high interest rates soon, despite growing fears of a recession in the country’s economy this year.
Bloomberg agency stated that the unexpected increase in the number of new jobs and wages in the United States during the past month will increase the chances of keeping the Federal Reserve on high interest rates for a longer period and may open the door to the 11th consecutive increase in interest rates next June.
The data of the US Department of Labor released the day before yesterday showed job growth in the United States during the past month by more than expected, although the increase came in the wake of a significant decline according to the revised data for the past two months.
And the Ministry of Labor stated that the number of jobs in the non-agricultural sectors increased last April by 253 thousand jobs, while analysts had expected an increase of about 179 thousand jobs only.
Federal Reserve Chairman Jerome Powell said the labor market remains “extremely understaffed” and that unemployment data is one of the main indicators he and his colleagues on the Board consider when deciding whether or not to cut interest rates.
2023-05-06 22:03:27
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