U.S. added stronger than expected 162,000 jobs in August as labor market bounced back
The U.S. economy added 162,000 jobs in August, exceeding expectations and keeping the unemployment rate steady at 4.1%. The report triggered a market reaction, causing bitcoin to drop and Treasury yields to rise as investors weigh the implications for future Federal Reserve interest rate hikes.
Why it matters
Stronger-than-expected labor data complicates the Federal Reserve's monetary policy path, influencing market sentiment on interest rate cuts and asset valuations.
According to the government’s Nonfarm Payrolls report released Friday morning, the U.S. economy added 162,000 jobs last month. That was well above the consensus estimate of 56,000 and followed the addition of 21,000 jobs in July (revised from an originally reported decline of 23,000).
The unemployment rate came in at 4.1% versus 4.1% expected and July’s 4.1%.
Reaction in markets was swift, with bitcoin tumbling about 2% to below $80,000. The U.S. 10-year Treasury yield jumped 3.3 basis points to 4.80% and the 2-year note added seven basis points to 4.40%. U.S. stock index futures are modestly lower.
Federal Reserve Chairman Kevin Warsh put a September rate hike firmly on the table one week ago today with his hawkish Jackson Hole speech.
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