U.S. Job Growth Dims Fed Rate Cut Prospects

The U.S. economy added a stronger-than-expected 254,000 jobs in September, with the unemployment rate holding steady at 4.1%, according to the Bureau of Labor Statistics. Wage growth was notable, with average hourly earnings rising by 0.4%. These robust figures have prompted economists to predict a more gradual approach to interest rate cuts, as the labor market's strength suggests less need for aggressive monetary easing. The strong job market data has sparked debate among experts, with some suggesting the Federal Reserve may even pause rate cuts altogether. Market odds of a 50-basis-point cut have sharply decreased, reflecting the labor market's resilience. The Fed's next meeting on November 7 will take into account this data and upcoming inflation figures.