Last month's slowdown in U.S. jobs growth may be a sign weakness in manufac...
SAN FRANCISCO/ WASHINGTON - Last month’s slowdown in U.S. jobs growth may be a sign weakness in manufacturing is spreading to the broader economy, or it could simply reflect an expected downshift in a fundamentally healthy labor market.
“While not everyone fully shares economic opportunities and the economy faces some risks, overall it is — as I like to say — in a good place,” Fed Chair Jerome Powell said in brief remarks in Washington. “Our job is to keep it there as long as possible.” Traders of rate futures were quick to judge the Fed would stay on track for at least one more interest-rate cut this year. But they also pared bets on a fourth rate cut in 2019 that they had piled into earlier in the week after data showed factory activity was contracting and growth in the massive U.S services sector was slowing.
Policymakers are “wrestling with” figuring out if the U.S. economy is headed for a “soft landing” or a “steep decline,” Atlanta Fed President Raphael Bostic said during a moderated discussion at Tulane University in New Orleans. The Labor Department report Friday showed the unemployment rate fell to 3.5% last month as U.S. employers added 136,000 jobs, down from 168,000 jobs created in August but still plenty to keep up with labor market growth.
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