NEWS!
The latest US employment report, released on September 6, 2024, showed that the unemployment rate fell slightly to 4.2%, from 4.3% in July. This drop suggests a moderate slowdown in the labor market, although not alarming. Job growth was 142,000 jobs in August, a figure that, while below economists' expectations (who were forecasting 160,000), remains an indicator of stability, with a labor market that is cooling but not collapsing.
As for interest rates, there is growing expectation that the Federal Reserve will begin to reduce rates in the coming months. Although the labor market is still showing resilience and wages continue to rise, many economists suggest that a cautious reduction in interest rates would be beneficial to mitigate economic tensions and avoid excessive tightening that could further slow growth. The odds of a rate cut at the Fed's September meeting are between 25% and 50%, although some analysts suggest that a gradual adjustment in the coming months may be more prudent.
In summary,
THE US LABOR MARKET remains relatively robust, but the pace of job creation is slowing, raising expectations of a moderate rate cut by the Fed, in order to support growth without triggering a recession.
