US economy adds 162,000 jobs in August

The U.S. economy added 162,000 jobs in August , soaring past expectations and raising the prospect that the Federal Reserve could hike interest rates next month.

The unemployment rate remained unchanged at 4.1 percent , according to the data released Friday by the Bureau of Labor Statistics (BLS).

Economists had expected U.S. employers to add 53,000 jobs last month and the jobless rate to hold steady at 4.1 percent, according to The Wall Street Journal.

The August jobs data marked a sharp reversal from July, which initially showed the economy losing 23,000 jobs .

However, the BLS revised jobs data from the past two months to show employers added 31,000 and 21,000 jobs in June and July, respectively.

Friday’s numbers “may corroborate that recent softness was temporary rather than indicative of a broader deterioration,” Jerry Tempelman, vice president of economic and fixed income research at Mutual of America Capital Management, said in a statement.

The better-than-expected jobs report allows the Fed to focus “squarely on controlling inflation when they meet next in September,” Bill Adams, chief U.S. economist for Fifth Third Commercial Bank, said in a statement.

This is raising the prospect that the Fed could raise rates at its meeting next month.

As of Thursday afternoon, markets saw about a 50 percent chance the central bank maintains rates at their current level and a 50 percent chance it votes for a quarter-point hike, according to CME’s FedWatch tool. By Friday morning, this shifted to about a 60 percent chance of a hike.

Check out a full report at TheHill.com .

Welcome to The Hill’s Business & Economy newsletter , I’m Julia Shapero — bringing you the latest on the intersection of Wall Street and Pennsylvania Avenue.

Programming note: The Business & Economy newsletter will be off Monday for the holiday. We’ll be back in your inboxes on Tuesday.

Did someone forward you this newsletter? Subscribe here.

Key business and economic news with implications this week and beyond:

President Trump said Friday that tariff-free imported beef will be coming from Brazil and Argentina, among other places, as his administration works to alleviate stubbornly high prices.

President Trump called on the Federal Reserve to lower interest rates Friday after the August jobs report came in stronger than expected, threatening to cut off trade with several countries if the central bank doesn’t budge.

The Department of Justice (DOJ) is expanding its investigation into beef affordability in the U.S. to include eight of the largest grocers in the country.

A pharmaceutical company is voluntarily recalling three lots of epinephrine injections, USP 30 mg/30 mL, over sterility concerns and the potential presence of particulate matter.

Branch out with more stories from the day:

The average price of diesel hit an all-time high Friday in the U.S., as the conflict with Iran puts more strain on the global energy supply.

Business and economic news we’ve flagged from other outlets:

Wall Street ends lower as solid jobs data fuels hawkish Fed bets ( Reuters )

World’s biggest sovereign wealth fund plans to cut U.S. Treasury holdings ( CNBC )

Justice Elena Kagan, an avowed institutionalist, has said it is a “bad rap” that the Supreme Court is in the tank for President Trump. She may have been thinking of the tariff and birthright citizenship cases, in which majorities ruled against his policy … Read more

The North Carolina State Board of Elections approved new guidelines Friday regarding mail-in ballots, hours before those same ballots were sent to voters. Read more

Opinions related to business and economic issues submitted to The Hill:

Check out The Hill’s Business page for the latest coverage.

400 N Capitol Street NW Suite 650, Washington, DC 20001

If you believe this has been sent to you in error, please safely unsubscribe .