♡ US employment data is surprisingly strong, the Fed is unlikely to reduce interest rates soon ♡
After the report was released, traders in the interest rate futures market reduced bets on the possibility of the Fed cutting interest rates in September to about 56%, from 70% the previous day.
The US economy had a number of new jobs in May that far exceeded expectations - a data point that helps ease concerns about the slowdown of the job market in particular and the economy in general, but also makes the world worried. Investors are disappointed because it increases the possibility that the US Federal Reserve (Fed) will keep interest rates higher for longer.
The long-awaited report released by the US Department of Labor on June 7 showed that the US non-agricultural sector added 272,000 jobs last month, a sharp increase compared to the number of 165,000 new jobs in April and exceeding the number of new jobs in April. far from the number of 190,000 jobs that economists gave in a survey by Dow Jones news agency.
However, the unemployment rate increased to 4%, marking the first time it reached this mark since February 2022. Previously, experts predicted that the unemployment rate would remain at 3.9% last month or decrease to 3.8%.
The US May jobs report was released in the context of investors in this country and globally feeling uncertain about when the Fed might start lowering interest rates from a 23-year high. In recent weeks, Fed monetary policy makers have signaled they do not want to cut interest rates anytime soon because inflation is still higher than the 2% target.