The US non-farm payrolls unexpectedly increased by 119,000 in September, and the Federal Reserve's interest rate cut decision became more complicated

The U.S. labor market unexpectedly rebounded, which will complicate the Federal Reserve's decision on whether to cut interest rates next month, according to the U.K. Financial Times Review's September non-farm payroll report. The new non-farm payroll reported on Thursday recorded 119,000 in September, not only higher than the 50,000 predicted by institutional survey economists, but also significantly higher than the revised 22,000 in August. The unemployment rate rose to 4.4% from 4.3% in August, a new high since 2021.
The report is the first economic health indicator released by the US Bureau of Labor Statistics since the record shutdown of the federal government interrupted the release of official data. The unexpectedly positive data will strengthen the stance of hawkish members of the FOMC, who have always warned the Federal Reserve against cutting interest rates too quickly. After the data was released, both US Treasury yields and the dollar index fell. Despite long-standing pressure from US President Donald Trump to cut interest rates, deep divisions have emerged within the central bank, between those who advocate further rate cuts at the December meeting to support the labour market and those who worry that it could exacerbate inflation risks. The government shutdown has made the Federal Reserve's decision-making worse - the release of regular economic reports has been interrupted, and the Bureau of Labor Statistics announced on Wednesday that it will no longer release a separate October employment report due to the stagnation of data collection during the shutdown, and some data will be merged into the November report. (Jin Ten)