- US added 254,000 jobs in September, surpassing the 150,000 forecast.
- The unemployment rate dipped to 4.1%, signaling a stronger labor market.
- Analysts expect the Fed to consider a 25bps rate cut, stirring volatility in crypto markets.
The US labor market significantly improved in September, with 254,000 new jobs added, surpassing the projected 150,000. This marks a notable sign of economic strength and has caught the attention of market observers, particularly those watching the Federal Reserve’s monetary policy.
The unemployment rate also fell to 4.1%, down from August’s 4.2%, further indicating labor market resilience. Wage growth also maintained its momentum, increasing to 4% year-over-year, with a monthly rise of 0.4%, matching the previous month’s rate.
These developments have sparked discussions among economic experts regarding the Federal Reserve’s next move on interest rates. According to reports, the Fed had previously hinted at a more cautious approach to tightening monetary policy, following a 50 basis point rate cut last month, driven by signs of weakening inflation and a softer labor market.
However, the recent healthy jobs number can create more relief for the Fed to think for a more moderate cut for the interest rate and may be a 25 basis point cut said some analyst.
The expectation of the next move from the Fed has been brewing commotion in the financial markets. Specifically, the CME FedWatch Tool showed that the probability of another 50 basis point cut in November has reduced from 53% last week to 8% after the jobs data release.
Investors are now focused on whether the Fed will opt for the smaller rate cut, which could affect various asset classes, including the cryptocurrency market.
Cryptocurrency experts are pinning their hopes on the Fed’s potential decision – every change in the interest rates has previously allowed for a sharp rise in the price risks in the digital currency market. Following the rate cut last month, the crypto market observed strong performance where Bitcoin went past $65 thousand and other popular cryptocurrencies including Ether, Solana among others, and BNB.
As of the latest update, Bitcoin is trading at $62,153, marking a slight daily increase of 0.87% but a weekly dip of 5.4%.
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