NEW YORK: Federal Reserve policymakers on Friday got more reason to wait before raising interest rates again to fight inflation, after government data showed job gains are slowing and the unemployment rate ticked up.
It was the last broad read of the US labour market before November elections that will determine whether President Donald Trump’s Republican party keeps control of both houses of Congress.
A rising cost of living amid both elevated inflation and higher borrowing costs has put voters in a sour mood about the incumbents’ handling of the economy, though economic growth overall has been solid and the labour market has held pretty steady. The latest data shows that picture could be changing.
US employers added just 29,000 jobs last month, the Labour Department reported Friday, less than the 90,000 economists had expected. August payroll gains were revised downward. The September unemployment rate was 4.2percent, up from 4.1percent. Wage growth slowed.
The Fed raised short-term borrowing costs by a quarter of a percentage point last month to help get inflation back on track to 2percent. Policymakers signalled they will likely deliver at least one more increase by year’s end if the Iran war and other shocks that have pushed up inflation persist, as long as the labour market remains stable.
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