The U.S. job market remains stable, and the Fed may postpone the resumption of interest rate cuts until September

Odaily News The U.S. job market performed solidly in June, with nonfarm payrolls increasing by 147,000, higher than the revised 144,000 in May; the unemployment rate unexpectedly fell to 4.1%, while economists had expected a slight increase to 4.3%. The report showed that the labor market remained stable, which may allow the Federal Reserve to postpone the resumption of interest rate cuts to September. Although job growth exceeded expectations, the growth rate is slowing, mainly reflecting weak hiring activities. Layoffs remain quite low, and employers generally hoarded workers during and after the new crown pandemic because they had difficulty finding labor. Several indicators, including the number of first-time unemployment claims and the number of people receiving unemployment benefits, show that the labor market is showing signs of fatigue after a strong performance that protected the economy from recession. At that time, the Federal Reserve tightened monetary policy sharply to combat high inflation. (Jinshi)