June jobs report indicates cooling labor market, potential for lower interest rates [Video]

The June jobs report revealed a healthy addition of 206,000 jobs, but also indicated a significant cooling off in the labor market. “If you’re rooting for the Fed to start cutting interest rates, this was a very good jobs report,” said Greg McBride of Bankrate.com. The number of jobs added in June exceeded expectations but decreased from May. The unemployment rate rose to 4.1%, marking the first time it has reached this level since 2021. Wage growth was the weakest it has been in three years. “This really lines up with the ability of the Fed to cut interest rates as early as September, as long as the inflation number is cooperative,” McBride said. Inflation has significantly fallen from its peak, but it remains higher than the Federal Reserve’s target rate. The central bank released its bi-annual policy report on Friday, stating that it needs greater confidence that inflation is …