U.S. employment increased by 114,000 jobs in July, and the unemployment rate rose to 4.3%, according to data released Friday by the Labor Department.
Economists expect the U.S. to add 175,000 jobs and keep the unemployment rate steady at 4.1%.
The July jobs report came two days after Federal Reserve officials signaled they could start cutting interest rates as soon as September. With both inflation and the U.S. job market continuing to cool, the Fed is aiming to cut interest rates fast enough to avoid a deeper economic slowdown, but slow enough to keep prices in check.
The interest rate cut could provide some stimulus to the U.S. economy, which has weathered recession fears and high inflation for years since the pandemic.
Despite widespread fears of a recession, the U.S. economy has performed well throughout the Biden administration and appears to be in solid shape heading into the election.
But Biden has been at pains to highlight the strength of the economic recovery as Americans grapple with inflation, which has fallen from a 40-year high to within the Fed’s target.
As the Democratic nominee against former President Trump, Vice President Harris will face a unique challenge in getting her message across on the economy.
The September rate cut could ease some pressure on the economy and a sluggish housing market, where soaring home prices and rising borrowing costs have stumped would-be buyers.
But Trump is likely to take issue with anything that could turn around sentiment on the economy ahead of his fight with Harris.
“This is something they know they shouldn’t be doing,” Trump said in an interview with Bloomberg News last month.
Jerome Powell, the Republican who was Trump’s first appointee to the position, was under intense pressure from the former president throughout his tenure. Trump repeatedly pressured Powell to lower interest rates to give the U.S. more leverage in trade negotiations, but Powell refused.
Powell told reporters that the Fed’s interest rate setting decisions will not be affected by the upcoming election.
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