US Adds 165,000 Jobs in October, Unemployment Falls to 4.1%

The latest employment report is likely to reinforce the US Federal Reserve’s focus on controlling stubbornly high prices, even as the central bank faces demands for lower borrowing costs.

Employment growth exceeds expectations

Employment in the United States grew by 165,000 jobs in October, far exceeding analysts’ expectations, while the unemployment rate dipped to 4.1 per cent, government data showed on Friday.

The relatively stable labour market has given the Federal Reserve room to make fighting inflation its priority.

The central bank has a dual mandate: maintaining inflation at a long-term target of 2 per cent and ensuring maximum employment.

The strong October figures could increase pressure for further rate hikes as the Fed continues to address stubbornly high prices.

Potential clash with Trump

Further rate hikes would put the Federal Reserve at odds with President Donald Trump, who has repeatedly called for lower borrowing costs.

Trump responded to the central bank’s rate hike in September by demanding: “LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!”

The October data therefore adds to the tension between the Fed’s inflation-fighting priority and Trump’s calls for cheaper borrowing.

Source: South China Morning Post