Employers in the United States added 187,000 jobs in July, which was significantly lower than the 209,000 jobs predicted by economists and the 209,000 jobs added in June. The unemployment rate went down to 3.5%, nevertheless, while wages increased by 4.4% year on average.
Increases in employment were recorded in the healthcare industry (63,000), the social services (24,000), the financial sector (19,00), and the hospitality industry (17,00). Both the manufacturing and employment sectors have witnessed job losses (2,000 and 8,000, respectively).
The decision to hike interest rates was made by the Federal Reserve earlier this month. This resulted in the key federal funds rate reaching its highest level since the year 2001, which was a range of 5.25% to 5.5%.
Because of this decision, the cost of borrowing money to purchase houses, vehicles, and other products soared, which further restrained economic activity. Since March 2022, this is the 11th time that rates have been raised to combat excessive inflation.
Fed Chair Jerome Powell stated after the most recent Federal Reserve meeting that policymakers will keep an eye on the data to determine whether or not to implement another rate hike this year. He emphasized that incoming data would serve as the basis for a final decision.
According to the CME FedWatch Tool, 81 percent of traders currently believe the Fed will maintain current interest rates at its upcoming meeting. The S&P 500 has fallen for the seventh consecutive week since Fitch downgraded the United States' credit rating, causing new worries about the economy and financial markets.
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