September jobs report builds case for smaller Fed rate cut in November

Published On Oct 4, 2024, 10:46 AM

The September jobs report has shown stronger-than-expected employment growth, with 254,000 jobs added, compared to the anticipated 150,000. This includes revisions that indicated more job additions in previous months, leading the unemployment rate to fall to 4.1%. This solid performance has shifted Wall Street's speculation towards smaller interest rate cuts by the Federal Reserve in November, with the probability of a half-point cut dropping from 53% to just 8%. Economists generally believe that the Fed will opt for a more cautious approach, potentially leading to 25 basis point cuts in the upcoming meetings instead of larger cuts.