On Friday, the Labor Department said nonfarm employers added 224,000 jobs last month - the most in five months, and not the kind of labor market that would normally cause the USA central bank to cut interest rates.
The U.S. Labor Department data showed nonfarm payrolls rose by 224,000 jobs in June, the most in five months, and solidly beating economists' expectation of 160,000 additions. - Powell says Fed insulated from politics, wrestling with rate cuts - Trump says he can fire Fed's Powell; it's not that simple - Trump announces nominees to fill two vacant Fed seats https://tmsnrt.rs/2KdE2by 3/DON'T BE DISAPPOINTED China will publish its monthly dump of data next week and after some soggy manufacturing surveys recently it isn't expected to make particularly uplifting reading.
This complicates a debate Fed policymakers are having over whether the economy needs stimulus, setting up a possible standoff with markets at their July 30-31 meeting.
The number of unemployed persons, at 6 million, also showed little change.
Stocks fell while Treasury yields and the dollar advanced.
Surveys released this week showed that trade battles are creating a drag not only on US factories, but also the much larger services sector of the economy.
In early May, Trump increased penalty tariffs on $250 billion in Chinese goods and threatened to broaden the tariffs to $300 billion in other Chinese imports after trade talks between the world's two biggest economies stalled.
Federal Reserve Chairman Jerome Powell will testify before Congress on the monetary report on Wednesday and Thursday of next week. "It is hard to explain why wage gains are so slow in the current labor market".Читайте также: Michael Jackson fans sue in France over HBO documentary
Trading volume was light as USA markets reopened following the Independence Day holiday.
The Fed, in its semi-annual report to Congress, repeated its pledge to "act as appropriate" to sustain the economic expansion, and said while US economic growth continued "at a solid pace" in the first half of the year it likely weakened in recent months as higher tariffs weighed.
It starts at 1600 GMT and given the backdrop of record-high US stock markets plus strident calls for interest-rate cuts from President Donald Trump, he will be walking a fine line.
Job growth rebounded nicely in June as the economy added 224,000 workers to payrolls during the month. The unemployment rate edged up slightly, to 3.7 percent.
"The key metric that the Fed will look to is average hourly earnings, which rose by 3.1 percent over the past 12 months", Hooper said.
Construction employment rose by 21,000 jobs last month after gaining 5,000 in May. The transportation and logistics sector was one of the many areas of strength in June, led by improved gains among parcel and trucking companies.
The pace of rate cuts from there will hinge on broader questions. Growth in the services sector, which includes such varied industries as restaurants, finance and recreation, slowed in June.
The government sector was a major source of hiring, adding 33,000 jobs in June.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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