Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

US job surge dents shares

Rupert Cornwell
Friday 05 August 1994 18:02 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

WASHINGTON - An unexpectedly strong surge in job creation in the US last month sent bond and share prices skidding, writes Rupert Cornwell.

Financial markets took the news as a further indication the Federal Reserve is likely to push interest rates higher, perhaps this month. Labor Department figures showed the overall unemployment rate climbed 0.1 per cent to 6.1 per cent in July.

Until yesterday, the likelihood had been that the central bank would leave key short-term rates at 4.25 and 3.5 per cent until September.

Now some economists believe increases could come sooner, and predict the Fed will opt to boost Fed funds by a full half-point, instead of a mere quarter-point - the pattern since it began to nudge rates higher in February.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in