FOMC Cuts Interest Rates; MBA Economist Weighs In

The Federal Reserve’s Federal Open Market Committee cut interest rates by 25 basis points Wednesday in its third consecutive reduction. The market had anticipated the change.

142,000 Jobs Added in August, Unemployment Rate Stagnant

The U.S. Bureau of Labor Statistics released jobs data from August, finding that total nonfarm payroll enrollment increased by 142,000. The unemployment rate changed little at 4.2%.

MBA Chart of the Week: Monthly Payroll Growth and Unemployment Rate

The job market definitively slowed in July. Nonfarm payroll growth at 114,000 was well below the 12-month average of 215,000, while the unemployment rate moved up to its highest level since October 2021 at 4.3%, as shown in this week’s chart.

Unemployment Rises to 4.3% in July

Total nonfarm payroll increased by 114,000 in July, per the U.S. Bureau of Labor Statistics. However, the unemployment rate rose to 4.3%.

Fed Holds Rates Steady Again

The Federal Reserve again held rates steady July 31, noting that there has been “some further progress toward the Committee’s 2% inflation objective” over the past few months.

U.S. Economy Grew 2.8% in Q2; MBA Economist Weighs In

The real gross domestic product increased at an annual rate of 2.8% in the second quarter of 2024, per the “advance” estimate released by the U.S. Bureau of Economic Analysis.