The US labor market report highlighted the creation of 263,000 new jobs in September, the lowest rate since April 2021. The unemployment rate surprisingly dropped to 3.5% from 3.7% thanks to the combination of increased employment (+ 204 thousand) and people leaving the workforce (-57 thousand). “The lack of adequate workers continues to constrain the economy with job vacancies that exceed the number of American unemployed by more than 4 million. This indicates that the Fed has more work to do to slow the economy and keep inflation in check, ”comments James Knightley, Chief International Economist of Ing. The expert believes that a 75 basis point increase at the Federal Open meeting Market Committee of November 2 remains the obvious call considering the fact that core inflation is set to rise further (consensus indicates + 6.5% in September from 6.3% previously).
US: Resilient job market backs up another Fed 75bp hike
128