US Economy Adds 162,000 Jobs in August, Fed Focus Shifts to Inflation

The Bureau of Labor Statistics reported that nonfarm payrolls rose by 162,000 in August, exceeding economists' expectations and reversing a summer slowdown in hiring. The unemployment rate remained steady at 4.1%. Federal Reserve officials have been monitoring the labor market, and this report is likely to influence their decision on interest rates.

President Donald Trump weighed in on the jobs numbers, tweeting that he believes the economy is strong and that interest rates should be lowered. He threatened to cut off trade with countries that maintain a trade deficit with the US if interest rates are not reduced.

The Federal Reserve's focus has shifted from labor market data to inflation numbers ahead of their interest rate decision in less than two weeks. The six-month hiring average rose to 107,000 and 106,000 for all employers and private-sector employers, respectively, which is the highest level in more than two years.