The unemployment rate climbed to 4.3 percent in July, up 0.2 percent from June, the Bureau of Labor Statistics reported last Friday, alarming some economists who believe the Federal Reserve has waited too long to cut interest rates. The economy added 114,000 jobs and the number of people who were on temporary layoff rose by 249,000. The economy continued to add jobs in health care, social assistance and construction. BLS said the addition of government jobs slowed in the past few months and was little changed in July, with an increase of 17,000 jobs.
What’s next: The Federal Open Market Committee will meet next on Sept. 17–18, key dates that investors, economists and policymakers mark on their calendars. Some experts expect the Fed to hold rates steady at a target of 5.25–5.50 percent, as the Fed still waits for inflation to ease a bit more to its 2 percent target. However, recent declines have spooked the market and led traders to speculate that a cut of between 25 and 50 basis points is all but assured in September.
