Please ensure Javascript is enabled for purposes of website accessibility

Prime Minister of Yemen’s Houthi Government Killed in Israeli Strike

3 days ago

Texas Gov. Greg Abbott Signs Law Redrawing Congressional Maps

4 days ago

US Air Force will Offer Military Funeral Honors to Slain Capitol Rioter

4 days ago

US Republican Senator Joni Ernst Will Not Run for Re-Election, CBS News Reports

4 days ago

Wall Street Falls as Dell, Nvidia Drive Tech Losses

4 days ago

US Denies Visas to Palestinian Officials Ahead of UN General Assembly

4 days ago

Minneapolis Children Revealed Courage, Absorbed Fear During Church Shooting

5 days ago

Ford Recalls Nearly 500,000 Vehicles Over Brake Fluid Leak

5 days ago

Fresno-Bound Passenger Says Delta Attendant Slapped Him, Seeks $20M

5 days ago
US Adds 224,000 Jobs, Making Fed Rate Cut Less Certain
gvw_ap_news
By Associated Press
Published 6 years ago on
July 5, 2019

Share

The unemployment rate ticked up to 3.7% in June from 3.6% for the previous two months, reflecting an influx of people seeking jobs who were initially counted as unemployed. Average hourly wages rose 3.1% from a year ago.
The strength of the jobs report the government issued Friday could complicate a decision for the Federal Reserve late this month on whether to cut interest rates to help support the economy. Most investors have anticipated a rate cut in July and perhaps one or two additional Fed cuts later in the year. That scenario may be less likely now.
Stocks sold off early Friday before paring their losses later. The Dow Jones Industrial Average closed down a modest 43 points. But the yield on the 10-year U.S. Treasury note climbed to 2.04% from just under 2% before the jobs report was released, reflecting a view that the Fed might now be less inclined to cut rates multiple times.

Jobs Back on the Rebound

June’s solid job growth followed a tepid gain of 72,000 jobs in May, a result that had fueled concerns about the economy’s health. But with June’s pace of hiring, employers have now added, on average, a solid 171,000 jobs for the past three months. Last month’s burst of hiring suggests that many employers have shrugged off concerns about weaker growth, President Donald Trump’s trade wars and the waning benefits from U.S. tax cuts.
“Although there are drags on the economy in 2019, the expansion should continue through this year,” said Gus Faucher, chief economist at PNC Financial Services. “The doom and gloom was overblown.”
The unemployment rate ticked up to 3.7% in June from 3.6% for the previous two months, reflecting an influx of people seeking jobs who were initially counted as unemployed. Average hourly wages rose 3.1% from a year ago.

“If we had a Fed that would lower interest rates, we’d be like a rocket ship.” — President Donald Trump
Trump responded to Friday’s jobs report by tweeting, “JOBS, JOBS, JOBS!” But the strong hiring gains have lessened the case, at least for now, for the Fed to slash rates as Trump has repeatedly and aggressively pressed the central bank to do.
“If we had a Fed that would lower interest rates, we’d be like a rocket ship,” the president asserted to reporters in an appearance Friday. “But we’re paying a lot of interest, and it’s unnecessary. But we don’t have a Fed that knows what they’re doing.”

Fed Raised Interest Rates Four Times in 2018

Last year, Fed officials raised rates four times, in part to stave off the risk of high inflation and in part to try to ensure that they would have room to cut rates if the economy stumbled.
On Friday, the Fed reiterated that it would act as necessary sustain the economic expansion, while noting that most Fed officials have lowered their expectations for the course of rates. The Fed’s statement came in its semiannual report on monetary policy.
In Friday’s jobs report for June, the hiring gains were broad. Construction companies added 21,000 workers after having increased their payrolls by only 5,000 in May. Manufacturers hired 17,000, up from just 3,000 in May. Health care and social assistance added 50,500 jobs. Hiring by transportation and warehousing companies increased 23,900.

Local Governments Add Jobs

The government sector was a major source of hiring, adding 33,000 jobs in June. Nearly all those gains were at the local level.
For Todd Leff, CEO of Hand & Stone Massage and Facial Spa, the resilience of the U.S. job market has provided both an opportunity and a challenge. With more Americans earning steady paychecks, demand for massages and facials has increased, and the company plans to add 60 locations this year and roughly 1,800 jobs. But the low unemployment rate has also made it hard to find and retain workers.
“We could hire 1,000 more employees today — if they were available,” said Leff, whose company has about 430 locations and is based in Trevose, Pennsylvania.
Investors have been turning their attention to the Fed, which has expressed concern about threats to the economy, especially the uncertainties from Trump’s trade wars, and about inflation remaining persistently below its 2% target level. A Fed rate cut, whenever it happens, would be its first in more than a decade.

Fed Chief Will Testify Next Week

Joshua Shapiro, chief U.S. economist for the consultancy MFR, said the likelihood of a Fed rate cut late this month is now slightly lower, though he still estimates that the federal funds rate — what banks charge each other — will be sharply lower by the end of next year.
Ryan Wang, U.S. economist at HSBC Bank, suggested that the solid jobs report might create a communications challenge for Fed Chairman Jerome Powell when he testifies Wednesday and Thursday to congressional committees.
The financial markets still foresee a rate cut of 25 points this month, Wang said, adding, “It will be important to see if Chair Powell lays out on a strong case for near-term monetary easing in his testimony next week.”
The sluggish pace of hiring in May had signaled that employers might have grown more cautious because of global economic weakness and, perhaps, some difficulty in finding enough qualified workers at the wages that companies are willing to pay.
The pace of the overall economy is widely thought to be slowing from annual growth that neared a healthy 3% last year. Consumer spending has solidified. Home sales are rebounding. But America’s manufacturing sector is weakening along with construction spending. Growth in the services sector, which includes such varied industries as restaurants, finance and recreation, slowed in June.
 

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Tulare County Authorities Investigate Porterville Shooting

DON'T MISS

Trump’s World Liberty Token Falls in First Day of Trading

DON'T MISS

Bessent Expects Supreme Court to Uphold Legality of Trump’s Tariffs but Eyes Plan B

DON'T MISS

Trump Says Rudy Giuliani Will Receive Top US Civilian Honor

DON'T MISS

Aid Flotilla for Gaza Departs Barcelona After Stormy Weather Turnaround

DON'T MISS

Fresno County Garnet Fire Grows to 18,748 Acres in Sierra National Forest

DON'T MISS

US Judge Blocks Deportations of Unaccompanied Migrant Children to Guatemala

DON'T MISS

Israel Pounds Gaza City Suburbs, Netanyahu to Convene Security Cabinet

DON'T MISS

Thousands in Australia March Against Immigration, Government Condemns Rally

DON'T MISS

Trump Says He Will Order Voter ID Requirement for Every Vote

UP NEXT

US Judge Blocks Deportations of Unaccompanied Migrant Children to Guatemala

UP NEXT

Trump Says He Will Order Voter ID Requirement for Every Vote

UP NEXT

Chicago Mayor Says Police Will Not Aid Federal Troops or Agents

UP NEXT

Judge Blocks Pillar of Trump’s Mass Deportation Campaign

UP NEXT

Dollar Trades Lower With Fed Cut In View, On Course For Monthly Drop

UP NEXT

New $250 Visa Fee Risks Deepening US Travel Slump

UP NEXT

Lawsuit Links CA Teen’s Suicide To Artificial Intelligence

UP NEXT

Hearing Ends Without Ruling On Trump’s Firing Of Fed Governor Cook

UP NEXT

Gov. Newsom Launches New Task Force To Clear CA Homeless Encampments

UP NEXT

Texas Gov. Greg Abbott Signs Law Redrawing Congressional Maps

Trump Says Rudy Giuliani Will Receive Top US Civilian Honor

12 hours ago

Aid Flotilla for Gaza Departs Barcelona After Stormy Weather Turnaround

12 hours ago

Fresno County Garnet Fire Grows to 18,748 Acres in Sierra National Forest

2 days ago

US Judge Blocks Deportations of Unaccompanied Migrant Children to Guatemala

2 days ago

Israel Pounds Gaza City Suburbs, Netanyahu to Convene Security Cabinet

2 days ago

Thousands in Australia March Against Immigration, Government Condemns Rally

2 days ago

Trump Says He Will Order Voter ID Requirement for Every Vote

2 days ago

Greta Thunberg Joins Flotilla Heading for Gaza With Aid

2 days ago

Chicago Mayor Says Police Will Not Aid Federal Troops or Agents

2 days ago

Post-War Gaza Plan Sees Relocation of Population, ‘Digital Token’ for Palestinian Land: Washington Post

2 days ago

Tulare County Authorities Investigate Porterville Shooting

Tulare County sheriff’s deputies are investigating a shooting that left a man injured in Porterville on Monday afternoon. Deputies were call...

10 hours ago

A man was hospitalized after being shot Monday, Sept. 1, 2025, afternoon in Porterville, and Tulare County sheriff’s detectives are investigating. (Tulare County SO)
10 hours ago

Tulare County Authorities Investigate Porterville Shooting

Zach Witkoff, Co-Founder and CEO of World Liberty Financial, Donald Trump Jr. and Eric Trump pose before they ring the opening bell to celebrate the closing of ALT5’s $1.5 billion offering and adoption of its $WLFI Treasury Strategy at the Nasdaq Market, in New York City, U.S., August 13, 2025. (Reuters File)
10 hours ago

Trump’s World Liberty Token Falls in First Day of Trading

U.S. Secretary of the Treasury Scott Bessent pays his bill during a Labor Day visit to McLean Family Restaurant in McLean, Virginia, U.S., September 1, 2025. (Reuters/Brian Snyder)
10 hours ago

Bessent Expects Supreme Court to Uphold Legality of Trump’s Tariffs but Eyes Plan B

Former New York City Mayor and former lawyer for U.S. President-elect Donald Trump, Rudy Giuliani walks outside United States District Court in Manhattan, where a judge will consider a request by two Georgia election workers to whom he owes $148 million for defamation to hold him in civil contempt for failing to turn over his assets, in New York City, U.S., January 3, 2025. (Reuters File)
12 hours ago

Trump Says Rudy Giuliani Will Receive Top US Civilian Honor

Swedish activist Greta Thunberg departs with other activists on the Global Sumud Flotilla, a humanitarian expedition to Gaza, from the port of Barcelona, Spain August 31, 2025. The Sagrada Familia is seen in the background. (Reuters File)
12 hours ago

Aid Flotilla for Gaza Departs Barcelona After Stormy Weather Turnaround

Photo: USDA - Forest Service Tanker 40 at Fresno Air Attack Base. The Fresno County Garnet Fire in the Sierra National Forest has burned 18,748 acres and is 8% contained as crews make progress on containment lines while bracing for possible thunderstorms early this week. (Sam Wu/USFS)
2 days ago

Fresno County Garnet Fire Grows to 18,748 Acres in Sierra National Forest

U.S. flag and Judge gavel are seen in this illustration taken, August 6, 2024. (Reuters File)
2 days ago

US Judge Blocks Deportations of Unaccompanied Migrant Children to Guatemala

Smoke rises from Gaza after an explosion, as seen from the Israeli side of the border, August 31, 2025. (Reuters/Amir Cohen)
2 days ago

Israel Pounds Gaza City Suburbs, Netanyahu to Convene Security Cabinet

Search

Help continue the work that gets you the news that matters most.

Send this to a friend