Investing.com — The release of strong US payrolls data prompted traders to adjust their expectations for the next rate cut by the Federal Reserve, which is now expected to happen sometime in 2025 and late October.

This is a significant shift from earlier in the week when traders were considering a potential rate cut in June or July.

The latest employment numbers provide a clearer picture of the labor market, without any distortions due to weather or strikes.

These numbers support the idea that the US economy is gradually leaning towards monetary policy support.

The US economy saw an additional 256,000 jobs, and the unemployment rate slightly decreased, according to the announcement of the Labor Department on Friday. 4

December’s increase in nonfarm payrolls exceeded economists’ expectations by 155,000 jobs, according to a Wall Street Journal survey. The unemployment rate of 4.1% also exceeded expectations of 4.2%.

These results indicate a recovery in the US labor market from a mid-year decline, with potential signs of accelerating momentum.

Average hourly earnings also experienced growth, rising 0.3% from November to $35.69. This represents a 3.9% increase from December 2023.

Following the release of the employment report, stock futures fell sharply as strong jobs numbers likely bolstered the Federal Reserve’s strategy to slow the frequency of interest rate cuts in the coming weeks. month.