Breaking News: U.S. Jobs Report Due Friday - Will Fed Cut Interest Rates?
The highly anticipated U.S. monthly jobs report is set to be released on Friday, and investors are eagerly awaiting the results to gauge when the Federal Reserve may begin cutting interest rates.
Economists are predicting that the U.S. economy added 189,000 jobs in June, a decrease from the previous month's higher-than-expected gain of 272,000.
Leading up to the release of the jobs report, data has indicated a cooling in the country's labor market. U.S. unemployment benefit claims have increased, and private employers added fewer jobs than anticipated in June.
Morgan Stanley is slightly more optimistic, forecasting that payrolls will slow to 210,000 in June. The investment bank attributes this slowdown to a decrease in labor supply and softening labor demand.
The bank also predicts no change in the unemployment rate at 4.0%, with wages expected to rise by 0.3% on the month, slowing to 3.9% year-on-year.
Morgan Stanley anticipates slower employment growth in construction, leisure & hospitality, professional and business services, retail, transport, and education sectors.
The Federal Reserve recently kept interest rates unchanged and delayed potential rate cuts until later this year, as they await more conclusive evidence of cooling in the labor market or a decrease in inflation.
Analysis: The upcoming U.S. jobs report will provide crucial insights into the health of the economy and could influence the Federal Reserve's decision on interest rates. Investors should closely monitor the results as they may impact financial markets and individual investment portfolios.