US Jobs Growth Slows Sharply in September

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 slowdown from August's 162,000 new jobs and June's 31,000 additions. The unemployment rate also ticked up slightly to 4.2 percent.

The BLS revised down its previous estimates for July and August, showing the economy losing 10,000 jobs in July rather than gaining 31,000 as initially reported. Inflation has remained above the Federal Reserve's 2 percent target for five-plus years, with annual inflation at 3.4 percent in August.

Fed Chair Kevin Warsh said that the unemployment rate is 'running consistent with full employment', and that the central bank's dual mandate of maximum employment and price stability are not at odds in the medium term. Traders expect a roughly 72 percent chance of the Federal Open Market Committee (FOMC) keeping interest rates between 3.75 percent and 4 percent at its next meeting.