The US will release non-farm payrolls report, and wage growth may slow down
On Friday (August 4), the United States will release its employment report, which is expected to show 184,000 new jobs in July, the unemployment rate will remain at a historic low of 3.6%, and the average hourly wage will cool down.
The resilience of the job market has been a key factor supporting the view that the economy is heading for a soft landing, with cooling inflation and strong economic growth.
Last week, Federal Reserve Chairman Jerome Powell also boosted investor confidence by saying that Fed staff no longer forecast a U.S. recession and that inflation would return to its 2% target without massive job losses.
Previously, the Federal Reserve raised interest rates by 25 basis points again last Wednesday (26th), and the interest rate reached the highest level since 2007. However, policymakers did not rule out the possibility of raising interest rates again, and said it would depend on future economic data.
Signs of too rapid economic growth could raise concerns that the Federal Reserve will need to keep raising interest rates to curb inflation. Conversely, a sharp drop in employment could rekindle fears of a recession.