U.S. Job Market Shows Signs of Weakening: Potential Fed Rate Cut in September?
513 sats \ 3 comments \ @TomK 1 Aug econ
The latest data indicates a shift in the U.S. job market towards a downturn. Initial jobless claims have increased to 249K, surpassing previous figures of 235K and an estimate of 236K. Continuing claims also rose to 1.877M from 1.851M, against an expectation of 1.855M.
Despite a rise in nonfarm productivity to 2.3% from a previous 0.2%, exceeding the 1.8% estimate, unit labor costs dropped significantly to 0.9% from 4.0%, below the forecasted 1.7%.
This trend may influence Federal Reserve policy, with a potential rate cut anticipated in September.
write
preview
related posts
47 sats \ 0 replies \ @Satoshi__Nakamoto 1 Aug
I am shocked Continuing claims also rose to 1.877M from 1.851M, against an expectation of 1.855M I didn't expect that
reply
47 sats \ 0 replies \ @0xbitcoiner 1 Aug
Powell says a potential September rate cut would be apolitical
Federal Chair Powell said a rate cut at the September meeting would be unrelated to the upcoming presidential election.
He said the central bank would be “absolutely” apolitical if it lowered borrowing costs at the meeting. But the Fed chief also cautioned against assuming that a cut was definitely happening.
“We never use our tools to support or oppose a political party, a politician or any political outcome,” Powell said.
He also said the central bank’s economic forecasts do not take into account who wins the presidency.
“We would never try to make policy decisions based on the outcome of an election that hasn’t happened yet,” Powell said. That would be “a line we would never cross.”
Powell noted November will mark his fourth presidential election at the Fed. He also emphasized that the central bank is a nonpolitical agency.
— Alex Harring
https://www.cnbc.com/2024/07/31/fed-meeting-live-updates-traders-brace-for-central-banks-rate-policy-outlook.html
reply
47 sats \ 0 replies \ @Satosora 1 Aug
Another downturn? I know getting a job is becoming harder, especially a good fulltime position with benefits.
reply