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![Better-than-expected jobs data will push the Fed to raise interest rates in December [Xinhua]](http://thebricspost.com/wp-content/uploads/2015/12/243935647_8-e1449236456243.jpg)
Better-than-expected jobs data will push the Fed to raise interest rates in December [Xinhua]
Most analysts had predicted a figure of 192,000 to 200,000 jobs, lower than October’s 271,000 added jobs.
The report will likely serve as an additional catalyst for the prospects for a Federal Reserve interest rate hike this December.
The Federal Open Market Committee (FOMC) will decide on December 16.
Federal Reserve chief Janet Yellen all but assured that this was likely to happen when she told a Congressional Joint Economic Committee on December 3 that the situation was “close to the point at which we should be raising rates”.
However, she said that the FOMC will look at job reports now and in the next few months very carefully.
“What we’re looking to see is continued solid trend of job creation,” Yellen says.
In September, the US economy added 142,000 jobs in September. This was far below market forecasts of at least 200,000 added jobs.
Further reversing positive sentiment that the US economy was solid enough to prompt the Federal Reserve to raise interest rates, the Labor Department also revised downward its job data for July and August.
The number of created jobs in the economy for August were revised from 173,000 to 136,000.
While a rate increase is likely this month, Yellen has already warned that future increases will be at a very slow pace.
The BRICS Post with inputs from Agencies
