Fed Holds Off Rate Hike as Labor Market Cools Down

The US labor market is showing signs of cooling down, giving Federal Reserve policymakers more reason to hold off on raising interest rates. Last month, employers added only 29,000 jobs, falling short of the 90,000 economists had expected.

The Labor Department reported a revision downward for August's payroll gains, while the unemployment rate ticked up to 4.2% from 4.1%. This data may influence the Fed's decision on future rate hikes.

Policymakers previously signaled that they would likely deliver another rate hike by year's end if inflation remains high and the labor market holds up.