BlockBeats reported on November 20th that the US September nonfarm payroll report indicated an unexpected rebound in the US labor market, which will complicate the Federal Reserve's decision on whether to cut interest rates next month. The report, released Thursday, showed an increase of 119,000 nonfarm jobs in September, exceeding economists' forecasts of 50,000 and significantly higher than the revised 22,000 in August. The unemployment rate rose to 4.4% from 4.3% in August, a new high since 2021. This report is the first economic health indicator released by the US Bureau of Labor Statistics since the record-breaking shutdown of the US federal government disrupted official data releases. The unexpectedly positive data will reinforce the stance of hawkish members of the Federal Open Market Committee, who have consistently warned the Fed against cutting rates too quickly.
Following the data release, US Treasury yields and the US dollar index both fell. Despite long-term pressure from US President Trump for the Federal Reserve to cut interest rates, deep divisions have emerged within the central bank: one faction advocates for further rate cuts at the December meeting to support the labor market, while the other is concerned about potential exacerbations of inflation. The government shutdown has further complicated the Fed's decision-making process—regular economic reports have been interrupted, and the Bureau of Labor Statistics announced on Wednesday that due to the stagnation of data collection during the shutdown, it will not release a separate October employment report; some data will be combined with the November report. (Jinshi)