The US economy added 227,000 jobs in November, exceeding expectations, and set the stage for potential interest rate cuts from the Federal Reserve in December. The unemployment rate rose to 4.2%, but job growth remains strong, particularly in healthcare, hospitality, and government sectors.
Consumer sentiment improved for the fifth consecutive month, with a rise of 3% due to concerns about future price increases. However, Americans’ political leanings influence their economic views, with Democrats worried about tariff hikes and Republicans expecting an inflation slowdown under President-elect Trump.
The labor market appears to be stabilizing, but experts suspect this will lead to rate cuts intended to restart stagnant sectors of the economy. The results of the upcoming inflation report in December will also contribute to the Fed’s decision. Despite the positive job numbers, many Americans still struggle to find work, and the retail industry lost 28,000 jobs in November.
The Federal Reserve is likely to announce rate cuts in December, with some experts predicting a slowdown in cuts next year. Experts say the Fed will take a cautious approach due to data dependence on future decisions.
Source: https://www.foxbusiness.com/personal-finance/u-s-added-227000-jobs-november