U.S. Labor Market Cools, Sparking Fed Rate Cut Speculation

[Makomo]

The unemployment rate went up in the recent report of the Labor Department, Friday also showed less job creation than anticipated earlier with expectations of robust economic growth. Facing positive but not as strong economic data and clear inflation progress announced by the Federal Reserve earlier, new signs of at least a possible interest rate cut in 2024 confuse the previous forecasts. According to the report, there was an addition of 206000 in the nonfarm payrolls for June and unemployment rate remained the same at 4. 1% whereas, May’s job figures have been adjusted downwards from 272000 to 218000. Real Average Hourly Earnings increased by 3% in June to 0. 4% in May and the average workweek still was 34. 3 hours. Thus, currently traders have estimated at 78 percent probability of the Fed’s further rate cut and that would in September followed by in December this year.

 

[tts.alexius]

The unemployment rate went up in the recent report of the Labor Department, Friday also showed less job creation than anticipated earlier with expectations of robust economic growth. Facing positive but not as strong economic data and clear inflation progress announced by the Federal Reserve earlier, new signs of at least a possible interest rate cut in 2024 confuse the previous forecasts. According to the report, there was an addition of 206000 in the nonfarm payrolls for June and unemployment rate remained the same at 4. 1% whereas, May’s job figures have been adjusted downwards from 272000 to 218000. Real Average Hourly Earnings increased by 3% in June to 0. 4% in May and the average workweek still was 34. 3 hours. Thus, currently traders have estimated at 78 percent probability of the Fed’s further rate cut and that would in September followed by in December this year.

Looks like the job market's a bit mixed with lower job growth and steady unemployment, but traders are pretty confident the Fed might drop rates later this year. Thanks for the update!

 

[Bulsky]

The unemployment rate went up in the recent report of the Labor Department, Friday also showed less job creation than anticipated earlier with expectations of robust economic growth. Facing positive but not as strong economic data and clear inflation progress announced by the Federal Reserve earlier, new signs of at least a possible interest rate cut in 2024 confuse the previous forecasts. According to the report, there was an addition of 206000 in the nonfarm payrolls for June and unemployment rate remained the same at 4. 1% whereas, May’s job figures have been adjusted downwards from 272000 to 218000. Real Average Hourly Earnings increased by 3% in June to 0. 4% in May and the average workweek still was 34. 3 hours. Thus, currently traders have estimated at 78 percent probability of the Fed’s further rate cut and that would in September followed by in December this year.

Chillaxin' jobs report = rate cuts on the horizon?

 

[Makomo]

Looks like the job market's a bit mixed with lower job growth and steady unemployment, but traders are pretty confident the Fed might drop rates later this year. Thanks for the update!

Thanks for the heads-up! So, the job market's a bit of a mixed bag with lower growth and steady unemployment, but traders are optimistic the Fed might lower rates later this year—super interesting stuff! Appreciate the suggestion!

 

[Makomo]

Chillaxin' jobs report = rate cuts on the horizon?

Hey, looks like the latest jobs report is pretty chill, which might mean rate cuts are on the way! Thanks for the heads-up, always good to know what's up with the economy!