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January Jobs Report Keeps Rates on Pause: What the Experts Are Saying


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Published in Business and Finance on by Kiplinger   Print publication without navigation

The unemployment rate, which is derived from a separate survey, declined to 4% from 4.1% the prior month. Economists expected the unemployment rate to remain unchanged. Average hourly earnings increased 0.5% in January, which was higher than forecast.

The January Jobs Report, which showed an addition of 353,000 jobs, has led experts to believe that the Federal Reserve will maintain current interest rates at their next meeting. Despite the robust job growth, the unemployment rate ticked up to 3.7%, and wage growth slowed to 4.5% year-over-year, suggesting a cooling labor market. Analysts like David Russell from TradeStation highlight that while the job numbers are strong, other economic indicators like manufacturing and services PMI are declining, indicating a mixed economic signal. This scenario supports the Fed's cautious approach to rate changes, with expectations leaning towards no rate cuts until at least May, as suggested by market reactions and expert analyses. The report also notes a significant revision of previous job growth numbers, adding to the complexity of interpreting the current economic health.

Read the Full Kiplinger Article at:
[ https://www.kiplinger.com/investing/january-jobs-report-keeps-rates-on-pause-what-the-experts-are-saying ]

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