Fed Faces Tougher Rate Call as Strong Jobs Data Complicates Decision

The US Federal Reserve may face a tougher decision on interest rates in September following a stronger-than-expected August jobs report. The report showed that non-farm payrolls rose by 162,000 in August, surpassing expectations of 55,000.

Gains were led by leisure and hospitality, as well as local government education. Payrolls for the previous two months were revised upwards by a combined 55,000, taking the three-month average to 71,000.

The unemployment rate remained unchanged at 4.1 per cent, while the labour force participation rate improved to 61.6 per cent from 61.4 per cent. The employment-to-population ratio also edged up to 59.1 per cent.