The U.S. economy surpassed expectations in September by adding 254,000 jobs, while the unemployment rate fell to 4.1 percent, according to data released by the Labor Department. This impressive job growth has left Republicans feeling unsettled, as it hinders one of their favored narratives.
Economists had anticipated a more modest increase of 140,000 jobs and a jobless rate of 4.2 percent. The report also included upward revisions for previous months, adding 55,000 jobs to July’s figures and another 17,000 for August, bringing total job gains to 144,000 and 159,000, respectively.
This report comes as the nation gears up for elections, with Vice President Kamala Harris narrowing the gap against former President Trump in terms of voter trust on economic management.
Just two weeks prior to this jobs report, the Federal Reserve made a significant move by cutting interest rates for the first time in over two years, reducing the rate by 50 basis points to a range of 4.75 to 5 percent. This decision was influenced by easing inflation, which is now nearing the Fed’s target, as well as signs of a labor market slowdown.
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Paul Ashworth, chief North America economist at Capital Economics, noted that the robust labor market in September may prompt the Fed to reconsider its approach to monetary policy.
He remarked, “Looking at the labor market strength evident in September’s Employment Report, the real debate at the Fed should be about whether to loosen monetary policy at all.”
The Federal Reserve initiated its campaign against inflation in early 2022, responding to a peak inflation rate of 9.1 percent in June of that year. Since then, inflation has considerably decreased, with consumer prices rising just 2.5 percent year-over-year as of August.
A flustered Maria Bartiromo of Fox News responded to the new data, stating, “This report is basically abating concerns that the labor market is deteriorating!”
Watch the clip below:
"This report is basically abating concerns that the labor market is deteriorating!" — It's time for my favorite Friday tradition: Maria Bartiromo and company cope with yet another strong Biden jobs report pic.twitter.com/ITabKtXAIy
— Aaron Rupar (@atrupar) October 4, 2024
