Acting Labor Secretary Julie Su will provide details on the September employment report, employment revisions, manufacturing losses and collective bargaining as longshoremen reach a tentative agreement.
Former U.S. Treasury Secretary Larry Summers said September's better-than-expected jobs report showed the Fed's half-point rate cut was a “mistake.”
This follows a Labor Department report showing that employers added 254,000 jobs in September, well above the 140,000 increase expected by LSEG economists. unemployment rate Although the rate was down slightly from last month to 4.1%, Summers took to social media to voice his opinion on the central bank's actions.
American economist and Harvard University professor Lawrence H. Summers is interviewed at Taj Place in New Delhi, India on September 30, 2024. (Raj K Raj/Hindustan Times, Getty Images/Getty Images)
“Today's jobs report confirms suspicions that we are in a high-neutral interest rate environment where responsible monetary policy requires caution in cutting rates,” the leading economists wrote. “In hindsight, the 50 basis point cut in September was a mistake, but one with no major consequences.”
Private sector payrolls growth beats expectations to rise to 143,000 in September: ADP
“According to this data, not only 'non-landing' but also 'non-landing' are risks that @Federal Reserve Forces must consider,” he continued. “Nominal wage growth remains well above pre-COVID levels and does not appear to be slowing.”
Analysts at Kobeisi Letter said the latest employment data was better than expected for the first time since May and questioned whether the central bank's 50 basis points cut was too aggressive.
US economy added 254,000 jobs in September, much more than expected
According to the newspaper, ahead of the latest employment report, the market had seen a nearly 50% chance that interest rates would be cut by 50 basis points next month, but after the employment report, a 25 basis point rate cut was expected in November. The probability of being rejected has skyrocketed to 93%. .
Federal Reserve Chairman Jerome Powell spoke at a press conference after the Federal Open Market Committee (FOMC) in Washington, Wednesday, September 18, 2024. The Federal Reserve cut the benchmark interest rate by half (Photographer: Al Drago/Bloomberg via Getty Images / Getty Images)
Eric Bean, a labor lawyer and partner at Foundation Law Group, told FOX Business that the 50-point cut was a mistake in response to a slowing labor market and rising unemployment. He said he did not agree with that opinion. Submission.
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“Now that inflation is under control, we want to address the other side of the Fed's mandate and make sure it doesn't depress jobs,” Bean said, adding, “I think there will probably be more rate cuts.” added. To prevent a large decline in employment in the future, we will need to measure more than half. ”
