As the Federal Reserve assesses the status of the economy, one of the most crucial economic indicators to follow is the Labor Department's monthly Employment Situation Report.
Following the release of the Bureau of Labor Statistics report, Bitcoin (BTC) lost roughly 2% of its value as the better-than-expected result reduced the Federal Reserve's flexibility to choose a slower rate rise at the upcoming monetary policy meeting in October. The downward pressure on the pricing of risky assets like stocks and cryptocurrencies may have been lessened with an easing off.
The employment report shows a considerable slowdown in hiring from August, when the U.S. gained 315,000 positions, but it may nonetheless raise concerns for central bankers who have spent the most of the year attempting to relax a highly tight labour market.
Rate of unemployment
Economists had predicted that the unemployment rate would continue at 3.7%, but it actually decreased to 3.5%, a level last reached in July. This dip in the labour force participation rate from 62.4% to 62.3% may have contributed to this change.
Hourly earnings are another crucial figure that Federal Reserve officials pay attention to since rising wages increase inflationary pressures. Hourly earnings increased by 0.3% in August on a monthly basis, which is bad news for the Fed.
Fed money
Federal funds futures market participants have begun to wager that the central bank would change course and halt rate increases soon, especially in light of indications of a softening labour market. Several Fed officials have opposed that notion.
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