US Job Growth and Wage Acceleration Delay Federal Reserve Rate Cuts

Reported 11 months ago

In May, US job growth surged and wages accelerated, leading traders to delay expectations for Federal Reserve interest-rate cuts. Nonfarm payrolls increased by 272,000, beating projections, while average hourly earnings rose by 0.4% from April and 4.1% from a year ago. The unemployment rate also increased to 4%, posing challenges for the Biden administration as voters express concerns about the economy and inflation. The strong labor market is likely to influence the Fed's monetary policy decisions, potentially delaying rate cuts until at least the end of 2024.

Source: YAHOO

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