On Friday morning, the latest employment figures were announced, revealing important trends just ahead of the Federal Reserve’s interest rate meeting scheduled for mid-December.
Key Takeaways
- The U.S. economy added 227,000 jobs in November, a figure that surpassed expectations of 200,000.
- The unemployment rate inched up to 4.2%, rising from 4.1% in October.
- In the aftermath of the report, Bitcoin experienced a slight bump, exceeding $98,500.
November’s employment report demonstrated a strong rebound in the U.S. labor market, especially following the disappointing numbers from October, which were likely affected by hurricanes in the southeast.
The Bureau of Labor Statistics reported a significant increase of 227,000 nonfarm payroll jobs, easily beating analysts’ predictions.
Additionally, the job figures from October were revised upward from an initial estimate of 12,000 to 36,000.
Market Reaction
The unemployment rate for November was reported at 4.2%, meeting expectations yet reflecting a rise from the previous month.
In reaction to this positive employment news, Bitcoin (BTC) saw a modest rise, reaching $98,445.
Impact on Federal Reserve Policy
This job report is one of the last key economic indicators the Federal Reserve will weigh before their meeting on December 17 and 18.
Just a month ago, many market analysts had anticipated a reduction in the Fed’s benchmark federal funds rate.
However, stronger economic performance, ongoing inflation concerns, and cautious remarks from Fed officials have led to a shift in those projections.
According to CME FedWatch, before the employment report was released, traders assigned a 70% chance to a 25 basis point rate cut, a slight decline from the previous month’s 80% estimate.
Following the new employment data, that probability surged to 88%.
Source: Coindesk
