At the same time, the unemployment rate dropped to 4.1% from 4.2% in August. With inflation now seemingly under control, the central bank is focusing on supporting the job market. The monthly jobs report is viewed as the single most important economic indicator. But “the labor market isn’t on the brink of collapse,” he said, although he added that Fed interest rate cuts may be needed to sustain the momentum. “Another half-point cut in the interest rate in November is now out of the question; a quarter-point cut is likely,” said Sung Won Sohn, professor of economics and finance at Loyola Marymount University.

Source: Los Angeles Times October 07, 2024 15:37 UTC