American job surge seen accelerating

American job surge seen accelerating

In June, American employers increased hiring and lifted wages for employees. These are signs of labor market strength, which could keep the major US bank on course for a third interest rate lift this year.

As a Reuters poll of economists states, on Friday the Labor Department's employment report will most likely show that nonfarm payrolls grew by 179,000 jobs the previous month, having gained 138,000 in May.

The unemployment rate is supposed to remain intact at a 16-year minimum of 4.3%. This year it has sunk five-tenths of a percentage point. Moreover, it fits the most recent Fed median prediction for this year.

Financial experts tell that labor market buoyancy could also stimulate the Fed to unveil plans to start cutting its $4.2 trillion portfolio of Treasury bonds as well as mortgage-backed securities already in September.

In June The Fed lifted its benchmark interest rate for the second time in 2017. However, with inflation dropping further below the central bank's 2% objective in May, financial experts expect another rate lifts only in December.

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