You are here

Will the US job report affect the Fed's rates decision?

That the job market has created an average of 199,000 jobs every month for the past five years is playing into the hands of hawks who believe that interest rates should be raised.

A recruiter makes a deal with a job seeker during a recent career fair at San Francisco. The US added 173,000 jobs in August, and the unemployment rate sank to 5.1 per cent, the lowest since April 2008.

NEXT week, the US Federal Reserve will have to decide whether or not to raise interest rates. And the questions on the minds of Fed watchers in Washington and Wall Street this week is if and how the new employment report, issued by the US Labour Department last Friday, and its data on the