Fed Eyes Potential Rate Cut

(MENAFN) Amid newly published figures from the United States indicating faster growth in consumer costs and continued deterioration in the employment landscape, the Federal Reserve is broadly anticipated to initiate its initial reduction in interest rates for the year in the upcoming week.

In the wake of the prior week's labor data, the current inflation statistics drew significant attention for clues regarding upcoming economic policy moves.

Based on recent numbers, the volume of available positions in the US (JOLTS) dropped to 7.18 million in July — the lowest point since September 2024 — and fell short of analysts’ predictions.

Employment within the private sector increased by just 54,000 roles in August, a figure beneath expectations set by the market.

Similarly, non-agricultural job growth in the US saw a modest gain of 22,000 positions in August, again underperforming relative to forecasts.

The jobless rate edged up from "4.2%" to "4.3%", marking its highest level since October 2021.

In addition, the tally of individuals applying for jobless assistance for the first time surged by 27,000, reaching "263,000" during the week ending "Sept. 6" — a peak not seen since October 2021.

At the same time, the Bureau of Labor Statistics revised its employment data, revealing that "911,000" fewer nonfarm positions had been created in the 12 months ending in March 2025 than had been previously estimated.

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