Unlock the Digest of the editor for free
The US economy added 147,000 jobs in June, by breaking expectations and leading investors to scale back their bets on interest rate letings.
Despite the uncertainty about Donald Trump’s trade and immigration policy, the figure of Thursday of the Bureau of Labor Statistics exceeded the upward revised 144,000 items added in May and the 110,000 predicted by economists who were questioned by Bloomberg.
The unemployment rate fell slightly to 4.1 percent and the April increase in the job was higher revised to 158,000.
The unexpectedly strong figures will illuminate the pressure on the American Federal Reserve to lower the interest rates, despite the repeated calls of the US President for the Central Bank to do this.
The dollar climbed after the data publication, because investors bet that the Fed will lower the rates more slowly than previously thought. The currency rose by 0.5 percent against a basket with rivals.
Traders now bet that there is about a 5 percent chance on the US Central Bank that reduces loan costs this month, compared to around 25 percent before the baneng data.
“The figures were much, much higher than expected,” said Andy Brenner, head of international fixed income at Natalliance Securities.
“This takes a July off the table,” he added. “Even with a huge delay in [the consumer price index]You will not see a reduction in the Fed in July. Even September is now somewhat in question. “
Fed -chairman Jay Powell has had to deal with ruthless pressure from Trump to lower loan costs. This week the president shared a handwritten note that he had written to Powell and said that his reluctance to lower the rates “the US had cost a fortune”.
On Tuesday, Powell indicated that a cut was not “off the table” in July, in a clear reversal of his previous position that the loan costs had to be on hold until autumn.
But under the headline figures, analysts sounded a more cautious note about the lack of turnover on the labor market. The small decrease in the unemployment rate was largely powered by people who leave the labor market instead of finding work.
“The household research really shows a labor market with very little Churn,” says Diane Swonk at KPMG. “There is a feeling of a frozen job market and we are not due to the ice. The unemployment rate fell, but it fell for the wrong reasons.”
The two -year treasury, which moves with interest in interest and vice versa to prices, rose by 0.09 percentage points to 3.87 percent on Thursday morning.
The S&P 500 rose by 0.4 percent shortly after the opening bell in New York.
The rise in the main employment figure largely came from an increase in jobs in health care and an unexpected jump in those who are used by the US governments of the US State after minimal growth in the past two years.
Employment in the federal government continued to deteriorate in the aftermath of the cost -saving drive led by Elon Musk, with jobs now with 69,000 since January.
Florian Ielpo, head of Macro at Lombard Odier Investment Managers, said that the “bump” in employment in the state government “explains a significant part of the increase above the consensus number”.
“So worldwide, not a bad report, but probably not as strong as initially suggested from the first reading,” he said.
