Job creation in the US accelerates in August and maintains the possibility of an interest rate increase by the Fed

Job creation in the United States accelerated sharply in August, while the unemployment rate remained at 4.1%, indicating a still stable job market and keeping open the possibility of an interest rate increase by the Fed (Federal Reserve) this month.

The US economy opened 162,000 jobs outside the agricultural sector last month, after opening 21,000 in July in a figure revised to a coma, the Department of Labor's Bureau of Labor Statistics reported in its employment report this Friday (4).

Economists consulted by Reuters predicted the creation of 56,000 jobs, after 23,000 were closed in July as previously reported.

Estimates ranged from a loss of 25,000 jobs to a gain of 121,000. Job market momentum had slowed after a surge in the spring, in part due to the oil price shock and supply chain tensions arising from the U.S.-led war against Iran.

Ahead of the jobs report, financial markets had lowered interest rate hike expectations after Fed Director Christopher Waller said at a Reuters event on Thursday that he was inclined to argue for holding interest rates this month if upcoming data confirms inflationary pressures are easing. Financial markets assessed the probability of an interest rate increase at the Fed meeting on September 15 and 16 at around 52%, compared to 63.2% on Wednesday (2), according to the CME's FedWatch tool.

Concerns about inflation and a lack of forward-looking guidance from the Fed have contributed to rising Treasury yields, which economists see as a problem for the central bank.