US Economy Slows Amid September Job Drought

The US economy added only 29,000 jobs in September, according to data released by the Bureau of Labor Statistics (BLS). This is a significant decline from August's 162,000 job additions. The unemployment rate ticked up slightly to 4.2 percent.

The BLS revised past two months downward, showing the market losing 10,000 jobs in July and adding 133,000 in August. The economy had been recovering steadily since the COVID-19 pandemic, with the unemployment rate remaining below 5 percent since August 2021.

Despite this slowdown, inflation remains above the Federal Reserve's target of 2 percent, rising to 3.4 percent in August and 3 percent for core prices. Fed Chair Kevin Warsh has stated that the unemployment rate is 'running consistent with full employment,' but acknowledged the need for price stability.

Traders are pricing in a roughly 72 percent chance of the Federal Open Market Committee (FOMC) holding interest rates at a range of 3.75 percent to 4 percent at its next meeting on October 27-28. Multiple FOMC officials have forecasted future rate hikes, while emphasizing their commitment to monitoring incoming economic data.