Sluggish Job Growth May Delay Next Fed Rate Hike

The US Labor Department released its September jobs report on Friday, showing that employers added only 29,000 jobs, a slower-than-expected number. This may ease pressure on the Federal Reserve to raise interest rates before the midterm elections.

The unemployment rate ticked up to 4.2%, and job growth estimates for the past two months were revised downward. These numbers could temper expectations of further interest rate hikes by the Fed in the coming months.

The report comes on the heels of a key Commerce Department inflation index on Wednesday, which showed that price pressures beyond food and energy are cooling down. This data may head off the need for immediate central bank intervention.