From Morningstar: 2024-10-07 05:39:00

In September, the US added 254,000 jobs, exceeding economists’ expectations and lowering the unemployment rate to 4.1%. This strong hiring trend indicates a potential 25-basis-point interest rate cut by the Federal Reserve in November. Wages fell slightly to $34.20, but wage growth was up to 4.0% year over year in September.

Three-month growth for nonfarm payrolls rose to 1.4%, driven by job gains in September and upward revisions for July and August. The healthcare and leisure industries saw significant job growth recently. Despite slow growth in white-collar industries, overall productivity gains are strong, supporting a positive inflation outlook.

The strong September jobs report has shifted expectations for the Fed’s next move, with most analysts predicting a 25-basis-point rate cut in November. If economic data continues to strengthen, the Fed may halt its rate-cutting campaign in 2025. However, a potential economic slowdown ahead could prompt more aggressive interest rate cuts.



Read more at Morningstar: Strong US Jobs Report Sets Stage for Smaller Fed…