The latest data shows that non-farm jobs in the U.S. increased significantly in June, reinforcing the strength of the labor market and reducing the Fed's pressure to cut rates.

Non-farm employment in the U.S. increased by 147,000 in June, far exceeding the forecast of 110,000, demonstrating strong resilience despite trade and immigration tensions. Fed Governor Powell confirmed that the possibility of a rate cut is still under consideration.

MAIN CONTENT

  • Non-farm employment in June 2024 in the U.S. increased by 147,000, exceeding the forecast of 110,000.

  • The U.S. labor market is resilient despite tense trade and immigration policies.

  • Chairman Powell considers cutting interest rates despite the easing of pressure.

What does the spike in non-farm jobs in June mean?

Latest data indicates that non-farm employment in the U.S. increased by 147,000 positions in June 2024, exceeding both May and the forecast of 110,000 by economists. This reflects a strong recovery and resilience of the U.S. labor market in the face of uncertainties from trade and immigration policies during Trump’s administration.

According to Jinshi, this report demonstrates that the U.S. labor market is not only stable but also growing positively, providing a solid foundation for the largest economy in the world to continue developing.

What is the impact of employment data on the Fed's interest rate policy?

Strong employment information reduces the pressure for the Federal Reserve (Fed) to cut interest rates, even though President Trump continuously calls for the agency to lower rates to stimulate the economy. Fed Chairman Jerome Powell recently stated that a rate cut in July 'is still under consideration,' rather than confirming the maintenance of interest rates as of late summer 2023.

"We are still considering adjusting interest rates based on actual economic data. Recent employment data certainly influences our decisions."

Jerome Powell, Chairman of the Federal Reserve, July 2024

Analysis from financial and central bank experts shows that strong job reports reduce the outlook for loose monetary policy in the short term, focusing on maintaining stability and controlling inflation.

Why are better-than-expected figures important in the context of U.S. trade and immigration policies?

In the context of the Trump administration implementing protectionist trade policies and tightening immigration, raising concerns about potential economic downturn, job growth outside the agricultural sector has significantly exceeded expectations, demonstrating the resilience and durability of the U.S. economy.

Economist Jinshi stated that this growth demonstrates that the U.S. labor market has effectively adapted to external changes and pressures, providing a solid foundation for further developments.

How will the interest rate policy movement scheme look in the coming months?

The new job report somewhat alters the Fed's perspective on the interest rate adjustment path. Previously, the Fed expected to maintain stable rates until fall, but with more positive data, a rate cut may be considered sooner or have to wait for more data.

Month Employment Forecast Actual Employment Fed Interest Rate Policy May 2024 110,000 144,000 Maintain interest rate June 2024 110,000 147,000 Consider rate cut

What do experts think about the outlook for the labor market and U.S. monetary policy?

According to David Kelly, Chief Global Strategist at JPMorgan Asset Management, "The growth of non-farm jobs in June indicates that the U.S. economy is operating close to optimal conditions, giving the Fed a solid basis for caution in adjusting policy."

"Strong employment data is a positive signal proving that the economy is recovering well despite tense trade policies."

David Kelly, Chief Global Strategist, JPMorgan Asset Management, July 2024

Frequently Asked Questions

1. What does an increase of 147,000 non-farm jobs in the U.S. mean for the economy?

This figure indicates that the U.S. labor market is strong, supporting economic growth despite tense trade and immigration policies.

2. How does employment data affect the Fed's interest rates?

Strong job reports reduce pressure to cut interest rates, the Fed may keep rates stable or slightly reduce depending on upcoming data.

3. Does U.S. trade policy affect the labor market?

This policy creates some uncertainty, but employment data shows the market remains quite resilient and adaptable.

4. Is the Fed certain to cut interest rates in July?

Uncertainty remains, Chairman Powell is still considering based on the next data and current economic developments.

5. What impact does this data have on cryptocurrency investors?

Positive employment may change monetary policy expectations, thereby indirectly affecting cash flow and cryptocurrency market volatility.

Source: https://tintucbitcoin.com/du-lieu-phi-nong-nghiep-my-vuot-du-bao/

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